Competitive horizon

Strategic Direction

ISSN: 0258-0543

Article publication date: 14 September 2012

142

Citation

(2012), "Competitive horizon", Strategic Direction, Vol. 28 No. 10. https://doi.org/10.1108/sd.2012.05628jaa.001

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited


Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 28, Issue 10

Emerging markets targeted by Swiss companies

In the face of sustained economic difficulties in the European Union (EU), Swiss companies are increasing their emphasis on emerging markets. While the EU remains Switzerland’s largest trading partner, the percentage of exports to the region have gradually fallen in recent years. In contrast, exports to emerging markets have risen significantly during this time. Promotion of Swiss exports around the globe is the responsibility of OSEC, Business Network Switzerland and diversification of target markets continues to be a key priority until at least 2015. Companies will be encouraged to maintain focus on Brazil, Russia, India and China, countries that have massively increased their demand for Swiss products since 2009. The importance of the BRIC nations is recognized, but OSEC urges firms to aim at other emerging markets too. According to a report published by www.swissinfo.ch, opportunities exist in Latin American nations including Mexico, Chile, Peru and Columbia. A 26 percent rise in imports from Switzerland illustrates the status of the United Arab Emirates as an attractive overseas market. However, OSEC reminds businesses of the need for caution when venturing into unknown territory. Thorough research beforehand and partnering firms with sound market knowledge are perceived as ways to avoid political conflicts, corruption or other problems.

Improvements to industrial production processes on UK agenda

A report published by the Engineer (see www.theengineer.co.uk) points out that the UK government has pledged significant investment to further develop the country’s manufacturing sector. The investment will enable a number of new research and development initiatives aimed at making the sector more innovative. Projects are scheduled to be jointly run by the Engineering and Physical Sciences Research Council (EPSRC) and the Technology Strategy Board (TSB). Among the technologies being developed are autonomous intelligent machining and the use of ultrasonic test methods to enhance control of welding processes. Finding a more sustainable approach to titanium cutting is another objective for the partnership. In this case, the aim is to reduce the number of steps involved in the cutting process through the use of coolants, which permit faster heat dispersal. The report additionally notes ESPRC involvement in a project that seeks to apply terahertz imaging to improve automobile painting processes.

Why the tried and trusted is best

Many businesses believe that the best way forward is to diversify into new areas. The Online Business Advisor (see www.onlinebusadv.com) notes that this conviction can arise in times of prosperity when firms are prone to become overconfident. But expansion also appeals as a means to transform fortunes during a period of decline. According to the report, this strategy is often ill advised because of the genuine risk that an alteration of focus will result in core concerns being neglected. Such an occurrence can have seriously damaging consequences for the company. It is therefore more sensible for organizations to concentrate on what they already know best and strive to perform even better in their areas of expertise. In addition, making improvements in areas like service, marketing and operations can help raise customer satisfaction levels and positively impact on loyalty.

Outlook confident among Canadian businesses

A survey conducted by the Bank of Canada has revealed a surprising degree of optimism about prospects for the forthcoming year among Canadian firms. The central bank’s latest business outlook survey revealed that 59 percent of organizations expect to increase the number of employees. In contrast, job cuts are planned by only 6 percent. As reported by The Star (see www.thestar.com), 47 percent of those surveyed predict a growth in sales during this period. Sales are expected to fall in around a third of companies. A similar pattern was indicated in relation to investment plans. An increase is planned by 43 percent of organizations, as opposed to the 19 percent that anticipates a year in which investment will be cut. The report cites growing demand for commodities and increased opportunities abroad among reasons that justify confidence among Canadian firms. On the other hand, ongoing financial problems in Europe, uncertain economic data from the USA and slowdowns in emerging markets are regarded as factors to temper enthusiasm.

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