2018 Globalization Trends

240_F_6103632_ib328fMRJVHjrJSvj2VORJI21LaeKU1sIn this blog we will take a look at some top trends in globalization that are facing national and corporate strategies.  Globalization had massive momentum before the 2008 economic recession.  While many economies have recovered and are growing there are new forces today that are creating challenges to continued global integration.

Strategic Considerations:

  • The rise of nationalistic goals and causes has created more international tension and is slowing collaboration for united efforts towards shared opportunities and global challenges.
  • Many existing agreements like UK Union (Brexit), Trans-Pacific Partnership (TPP), and North America Free Trade Agreement (NAFDA) are falling apart without a new solution to advance the relationships.
  • Companies are increasing learning of the difficulties to understand localization of new markets, partnerships and navigating foreign policies.  Size alone may not be enough to successful globalize vs. regional relationship and relevance.
  • Population growth in BRIC to ICASA is creating new billion+ people markets and equal number of ecological challenges.  These areas of opportunity will be disrupted by their own sustainability crisis.  Compounding this trends is that the shift to urbanization is no where near complete in these countries and yet their cities and infrastructures are already beyond capacity.
  • Development of the middle class is a global concern for both developed and developing nations.  Economic growth without opportunity for an aspiring middle class has proven to be unsustainable long term.
  • Growing populations have a near term crisis of improving education to make the emerging workforce relevant, as well as, the need to develop new services for their aging populations.
  • Corporate involvement in Social causes and infrastructure will increase in terms of time, investment and focus in all regions.  Stability, prosperity and livability are key to corporate survivability.
  • The competition for natural resources will become ever more at the forefront of all strategies.  Both in securing and security the resources a nation has, but to also secure the relationships and collaborations needed to exchange resources with others.  This also drive innovation in shifting to new forms of sustainability to reduce critical dependencies on current resources.  This will continue to create new opportunities or disruptions for companies that either can or cannot respond to the demand.
  • Last century was dominated by the growth of global vertical players.   Today the rise of horizontal players and integrators will generate new forms of partnerships and disruptions for the classic business models that will reform business ecosystems.
  • The disruptive power of new digital currencies could unseat may traditional financial business models.   It does offer potentially a long term promise of a more integrated and audible world of finance, there is still the shorter term maturation and security issues that economies will have endure if they begin down that path.
  • While trade and migration are under strain,  the rise of data exchange continues to expand exponentially.   This is creating new opportunities to understand the worlds big data insights to make better decisions and investments.
  • The dark side or dark web continues to rise along with the growth of data exchange.  Global investment in securing digital transactions and traceability will be required to maintain stability of markets and economies.

Sources:  Harvard, McKinsey, Inc

 

 

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Global Branding Event / Brand Matters @ Carlson School of Management

Brand Matters Event

Entering global markets is can be a large shift in brand strategies for mature brands.    The event opened the door to the conversation by explore ones understanding of the culture your brand was trying to reach.   Brands need to consider that their brand equity at home will not count or transfer at all into the next global market.   Having a brand or launching a new brand that is not known may be a better starting point vs. any negative perceptions foreign cultures may have of corporate identities abroad.  In either case there is a large chasm of trust to be crossed.   Many cultural studies focus on basics of symbols, colors, and general beliefs.   While these are critical starting points to begin to understand the differences in cultural values and perceptions it only scratches the surface of understand the marketing landscape.   In many countries the conversation about foreign brands has been underway for quite some time.   Regardless of any accuracy,  foreign stakeholders have been driving the conversation and setting the tone.   Historical stigmas of imperial exploration and colonization still linger in the cultural concision of the population.  Modern day corporate greed splashes across daily headline.   Foreign policies create unfair playing fields for market competition.   So how does a brand overcome global challenges such as these?

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