Competitive horizon

Citation

(2010), "Competitive horizon", Strategic Direction, Vol. 26 No. 4. https://doi.org/10.1108/sd.2010.05626dab.001

Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 26, Issue 4

Clean energy industry set for boom

The World Wide Fund for Nature (WWF) predicts that clean energy technology will become the third largest industrial sector in the world by 2020. It is estimated by the international conservation organization that the sector will reach $2.4 trillion, with only automobiles and electronics performing better. The clean energy sector incorporates wind energy, insulation, solar panels and bio-ethanol treatment and has already surpassed the global pharmaceutical industry in revenue generated. A report published by Dawn (www.dawn.com) indicates clean energy sales as highest in Germany, United States and Japan and notes the expectation that a significant sales rise is imminent in fourth-placed China. When sales are measured in relation to gross domestic product (GDP), Denmark, Brazil and Germany lead the way. Denmark specializes in wind energy and insulation, while bio-ethanol production has become huge in Brazil. For Germany, wind energy and solar products are most significant.

Higher rating for Shanghai predicted

Shanghai could overhaul London over the next decade to become the second most important global financial center, according to a report by Eversheds. The law firm surveyed a total of 600 senior executives from London, New York, Mumbai, Shanghai and the United Arab Emirates (UAE), who revealed their expectation that New York would remain as financial center leader. While over 90 percent of Shanghai executives were confident about their prospects, only around one in five of their London counterparts expressed similar sentiments. The report, as published by the BBC (www.bbc.co.uk) also revealed a significantly positive outlook among UAE executives for the coming year. Eversheds believe the survey provides further indication that overall confidence levels are higher in the East than in more traditionally powerful Western economies.

UK scheme aims to boost consumer recycling

A report published by Sideways News (www.sidewaysnews.com) claims that 50 companies in the United Kingdom have signed up to a recently launched recycling label scheme. The system is attempting to increase recycling rates by indicating to consumers whether or not packaging can be recycled in their area. Label information will show the likelihood of the respective local authority accepting the packaging in question for recycling. Such systems have been operational in the past but the British Retail Consortium (BRC) label signals an attempt to establish a universal process. BRC insiders claim that confusion among consumers has a considerable negative impact on recycling behavior and insist that adopting a single logo will inform the public more effectively than the current method that involves a number of different symbols with the potential to send conflicting messages. The UK government has welcomed the initiative and is delighted that leading organizations are adopting the new labeling system.

Developing nations to lead global growth

The Conference Board has issued a report in which it predicts that world gross domestic product (GDP) will increase by 3.5 percent in 2010 and by over 4 percent the following year. According to the New-York based research group, world economic growth over the next decade will be driven mainly by developing countries in Asia and Latin America. Between 2011 and 2016, GDP is predicted to increase by 5.8 percent in such nations. The developing world currently accounts for slightly over half of global GDP and this is predicted to increase to around two-thirds by the end of this period. In comparison, growth in the developed world is forecast to be a more moderate 1.5 percent. The group cites continuing caution among Western consumers as a key growth inhibitor and suggests that growing desire among Americans for products that are both green and durable is also likely to prove a significant factor. China’s reliance on the USA for its exports could impact on GDP in the Asian country, the report, as published by the Associated Press (www.ap.org), claims. Growth in China between 2011 and 2016 could slow to 7.5 percent, whereas it is forecast to be 8 percent in India over the same five-year period. Inflation is not expected to be an issue in the near term, as falling global demand has led to an oversupply of production capacity.