NEW RULES OF COMPETITION IN A SUSTAINABLE AND INTERDEPENDENT WORLD PROF. MICHAEL R. CZINKOTA GEORGETOWN UNIVERSITY Blog: michaelczinkota.com Richmond, May 2, 2011
Dec 30, 2015
NEW RULES OF COMPETITIONIN A SUSTAINABLE AND
INTERDEPENDENT WORLD
PROF. MICHAEL R. CZINKOTAGEORGETOWN UNIVERSITYBlog: michaelczinkota.com
Richmond, May 2, 2011
Environment, Conservation and Sustainability
• Growth will speed up the depletion of natural resources
• Global shortage of important raw materials
• Global shortage of potable water
• Varying concern for the environment
Environment, Conservation and Sustainability
• Concern about climate change
• Saving energy and limiting energy use
• Green investments and carbon credits trade
• Key sectors for industry expansion
New Rules of Competition
• Information Technology Disintermediates
But: Creates New Markets and Products
New Rules of Competition
• Presence in all Markets
from marketplace to market space
Customer ReachCost of Distance
Supply Chain ManagementProduct Sourcing
Employment Sourcing
But: Products Still Need to Get There
But: Takes Special Efforts
New Rules of Competition
• Only Best in Class Projects– Compensated by Leadership Premium
Ownership
Use
Payment FlowsPayment Flows
Distribution StructureDistribution Structure
Product Life CycleProduct Life Cycle
New Rules of Competition
• From Ownership to Use
But: Compensate for Use
Key Growth Industries
1.Communications/IT100
2.Servicing Seniors 84
3.Pharma/biotech 72
4.Environmental 66
5.Energy 55
New Strategies
• Mass Customization– Service based competition–Cross-selling efforts
• Bundling–Customers expect a package–New plateau of customer satisfaction
New Strategies
• Revenue Re-streaming–Payment tracking–Direct interaction
• Knowledge transfer–Creating an innovation memory– Irresistible functionality
Global Success
The most criti cal business functi ons for global success
1. Logisti cs 1002. Marketi ng 863. Human Resources 714. Finance 575. Communicati on 34
The most criti cal business functi ons for global success
1. Logisti cs 1002. Marketi ng 863. Human Resources 714. Finance 575. Communicati on 34
The Bottom Line: Freedom
• Not being forced to do something unwillingly (Hayek)
• Choice – but stepping into the ring • Beyond boundaries• Together we can progress• Alignment of values – societal fit• Human excellence and happiness
(Thomas Aquinas)