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Chapter 1: Rising up to the Global Challenge > Implications for Companies

Implications for Companies

By definition, all strategic action represents a dialogue between the company and its environment. Every company must adapt to the changes in its environment that are inevitable. Yet there are choices. First, you can choose whether to be a first mover or a laggard in anticipating these changes and turning them into competitive advantage. Second, and perhaps more critically, you often have the power to shape the direction as well as the pace of environmental changes in ways that are more favorable to your own firm.

There are several fundamental changes in the global economic landscape that we regard as inevitable. First, the economic map of the world will change more radically in the next twenty years than it has in the last twenty. Given the commitment of the leaders in China and India to a widening and deepening of economic reforms, these two countries are likely to remain the most important economic stories. Notwithstanding China's rapid growth since 1979 and India's since 1991, these two economies have begun to acquire bulk only during the last few years. Because of the magic of compounding, continuation of high growth rates over the next two decades would have significantly greater material effect on the world's economic topography with each new year. In any case, China and India will be just two of the many important economic stories. Major countries such as Russia, Brazil, and Mexico have embraced economic reforms and begun the process of global integration o....


  

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