ALEAP

Opportunities
and
Challenges
in the
Global Market

• Jean Elsner
• Jets Group
Opportunities and Challenges in the
Global Market

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Opportunities and Challenges in the
Global Market
HOW GLOBAL ARE YOU?

당신은 얼마나 세계적인가

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Opportunities and Challenges in
the Global Market
Definition – Classically
The increasing interconnectedness of people and
places as a result of advances in transport,
communication, and information technologies
that cause political,
economic,
and cultural union.

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Opportunities and Challenges in
the Global Market
Definition – Pragmatically

The integration of production and

value delivery worldwide.

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Opportunities and Challenges in
the Global Market
Winners Losers

• The North (Japan, The • Sellers of primary and

U.S., Europe) and parts manufactured products
of Asia • Heavy industry in
• Sellers of technologically developed countries
advanced equipment • People without skills
• The highly skilled and • People unable to adjust
educated to new situations easily
• Global Culture • Local Cultures

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Globalisation Success Factors

Winners Losers
• Imagine the future • Refuse to acknowledge
• Functions co-operate the world is changing
with each other • Are arrogant
• Empower the customer • Focus on the present
• Outsource / Insource • Impose constraints on
themselves
• Offshore
• Focus on core
competencies
• Are prepared to
consider all options
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Opportunities in the Global Market

Determine if you have a clear advantage

over other prospective entrants or existing
players!

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Opportunities in the Global Market

Identify an unmet market need or

underserved market niche!

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Opportunities in the Global Market

Find the “right-sized” market!

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Opportunities in the Global Market

Look for a growing pie so that your slice

does not have to come from other players!
Opportunities in the Global Market

Conduct your own Competitive Analysis of

each market under consideration!

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Opportunities in the Global Market

Identify markets that are in a

state of “disequilibrium”!

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Opportunities in the Global Market

Find pockets of unhappy customers with

low switching costs!

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Opportunities in the Global Market

+ €
Unhappy customers are not enough;
they need to be willing and able to spend.
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Opportunities in the Global Market

Understanding the customers’ purchase

decision criteria is essential.

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Opportunities in the Global Market

Selling:
Indentify the
most appropriate
distribution channels
for your product in the
17 chosen country!
Opportunities in the Global Market

It may seem obvious, but...

All else being equal,
choose the more
profitable of
two markets!
Opportunities in the Global Market

Observe macro-level trends!

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Opportunities in the Global Market

Beware of regulatory hurdles!

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Opportunities in the Global Market

Identify the most attractive segment or

segments!
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Evolution and Revolution

Second
Industrial
Revolution
First
Industrial
Revolution

1700 1750 1800 1850 1900 1950 2000 2050?

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Globilisation Challenges 1

• Find innovations that justify high tariffs

• Reliability, Safety, Ecology etc.

Change Management Implications

• Creative staff, more focus on innovation on

systems rather than product
• From producer of everything to “trader of
intelligence”
• Improved customer relationships

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Globilisation Challenges 2

• Keep control of the commercial process

Change Management Implications

• Change of production landscape

• Change/ improved profiles of commercial staff
• More embedded teams
• Skilled global negotiators
• Improved contractual/legal skills required

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Globilisation Challenges 3

• Constantly recalibrate your global production

capabilities to match market conditions

Change Management Implications

• Staff mobility
• Increase staff flexibility
• Increased movement of staff and machines
• Languages
• Cultural issues

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Globilisation Challenges 4

• Be careful with acquisitions / joint ventures

• The track record is patchy… they often don’t
work or cause lots of issues

Change Management Implications

• Cultural integration
• Need very clear/easy/integration approach
• Need company integration team
• Will need to implant one’s own staff on a long
term basis to make them work

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Globilisation Challenges 5

• Maintain reliability / quality at the same time as

reducing cost, increased sophistication and
increasing productivity

Change Management Implications

• As moving to low cost country the challenge is

to maintain the reliability /quality etc… need the
staff to have the same attentiveness

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Globilisation Challenges 6

• Workforces will continue to be more of a world

wide global team… this means more importance
on having «ways of working» / «manufacturing
systems» «design systems», etc.

Change Management Implications

• Closures in one’s own country, plant openings

elsewhere, encourage staff mobility
• You need to establish a sense of urgency at the
grass roots level around a common long term
global vision

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Globilisation Challenges 7
• Where will our clients be in the future because
this will dictate
• The commercial workforce
• The R&D workforce
• The manufacturing sites
• The logistics & supply chains

Change Management Implications

• Don’t think product … think clients: we don’t

know now what the next thing will be… that
means you need to align your company around
clients
• Think about mobile phones… changes every 3
months

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Opportunities and Challenges in
the Global Market
Dinosaurs died out!
Mammals did not!

Instead they embraced change and survived.

Opportunities and Challenges in
the Global Market

Thank you

and

I very much look forward to talking

to many of you throughout the
Conference!

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