Competitive horizon

Citation

(2010), "Competitive horizon", Strategic Direction, Vol. 26 No. 3. https://doi.org/10.1108/sd.2010.05626cab.001

Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 26, Issue 3

Broader economic base key to Russian prosperity

Experiencing the severe global economic downturn has prompted Russia to appreciate the narrowness of its economic infrastructure. The country boasted strong growth before the crisis but its frailty was exposed when the price of coal, steel and copper crashed to further damage an economy already reeling from plunging oil prices. While recovery is underway and future growth now anticipated, its extent will be minimal unless a more diversified economy can emerge. The government recognizes this and has announced aims to upgrade industries within 15 years, a report published by Russia Today (www.russiatoday.ru) notes. However, analysts claim that effective modernization will only occur if political and administrative structures are likewise overhauled to reduce bureaucracy and attract necessary private investment.

Online appeal for Canadian auto buyers

A report published by www.wheels.ca claims that a growing number of Canadian consumers are using the internet as a key information source when purchasing or leasing new automobiles. A survey from Google discovered that 85 percent of the 1,200 motorists questioned undertook research online during the initial stages of the process. A further 74 percent and 69 percent respectively used the web during the middle and end phases. During the first two stages, newspapers were the second most popular research medium. Findings indicate that the internet is now as important as dealership staff within the Canadian auto industry. Almost half of motorists surveyed revealed this to be the case, although 36 per cent still felt that a showroom visit was crucial. Many consumers conduct online research to help decide which brand and model to purchase. The report notes the significance of this and suggests that manufacturers and dealers can entice and retain customers by creating attractive websites that may include access to creative videos that further inform potential buyers. Mounting dependence on the internet also has implications for dealership staff. With consumers having easy access to information and wider choice, employee proficiency is vital if sales are to be secured.

China to lead construction boom

Over the next decade, worldwide construction will expand by 70 percent to account for 14.6 percent of global GDP and be worth $12.7 trillion. This strong growth will be fueled mainly by developing nations, with demand for new residential building a key factor. Worldwide, this sector of construction will account for 40 percent of the total market by 2020. According to the Global Construction Perspectives and Oxford Economics, construction growth in emerging markets will be a huge 128 percent. In developed nations, a more moderate growth of 18 percent is forecast. The report, as published by www.china.org.cn, predicts that by this time China will have overtaken the United States to become the largest construction market in the world and will account for almost a fifth of global activity. Growth in India and Nigeria will be even stronger over the decade but the strength of China’s market ensures it will still remain up to four times larger than India’s. Poland is forecast to be the only European nation among the ten markets experiencing the biggest expansion.

Firms urged to keep hiring graduates

Research carried out by Lancaster University concludes that UK companies are wrong to cut back on graduate recruitment. The government commissioned report claims that every £1 of initial outlay will bring a future return of £5.30 and that significant returns on investment can materialize within two years. Published by Growing Business (www.growingbusiness.co.uk), the report also points out how hiring graduates increases organizational potential. A graduate perspective generates fresh ideas, provides a boost to innovation and helps develop future capabilities. It is argued that slashing the graduate budget during difficult economic times is likely to prove a misguided approach. Companies shorn of such talent can be commercially disadvantaged as they will be less able than the competition to respond appropriately when market conditions improve.