GROWTH OPPORTUNITIES IN THE ASIAN CENTURY
In 1990 China and India contributed approximately 10% of global GDP. By 2010 this number had risen to 20%. By 2020 the contribution of China and India to global GDP is expected to be 25%. The total Asian region is expected to contribute 50% of global GDP by 2025. In 2012 global GDP was US$72.6 trillion.
The conclusion from all of this is that there are plenty of market opportunities for all businesses that are arising from this global growth. This growth is inevitable.
Closer to home the Australian population is currently at around 24 million. By 2025 this is expected to rise to 28 million people. Once again growth in the economy is inevitable as these people need places to live, food to eat, roads to use, etc.
Growth and therefore the opportunity to commercially benefit from this growth is inevitable. The precondition to being able to take full advantage of these growth opportunities is that each business will need to be world competitive. This century the centre of gravity of global business is only a few hours to our north instead of being on the other side of the planet.
The reason we say that you must be globally competitive (even if you are not planning on being an export business) is that somewhere in Asia businesses are growing and being established that will view Australia as an attractive place to do business. These companies will sell into the local market or establish their own local operations. These companies will be buoyed by the global growth in their own region and will aggressively look to continue to grow into Australia and other countries.
This is actually a great opportunity. Too often the business environment is reported as a tough hard road just to survive. The growth we outlined above is a massive free kick to any business that wants to not just survive, but thrive. The growth is coming no matter if you like it or not!
To take advantage of these opportunities companies must continue to lift the bar on their own performances as these
new entrants to the market lift standards of performance and
innovation. These changes to a company’s competitiveness must
be created and implemented at high velocity.
Leveraging this opportunity into rapid, profitable and strategic
growth will require five key dimensions to be designed, executed,
and expanded rapidly and at a world class level.
Marketing - Not just a brochure and graphic design, but a
systematic way to attract buyers to your business.
Operations - Say what you do, then do what you say every time.
Operations must deliver what marketing promise.
Innovation - Creating the future business model, not just the
Leadership - Aligning and integrating the skills of your people
and supply chain to deliver incredible value
Action - Do it!, do some more!, and do it fast!
This is an incredible period for Australian businesses and any
other business operating in the Asian region. 5% continuous
improvement will not make the grade. Companies that make step
changes will grow and thrive rapidly in this environment.
For further information contact Manufacturship on
1300 226 121, email firstname.lastname@example.org or visit