Former Accenture Chairman Masakatsu Mori shares his 30 years experience of advising many of Japan’s leading corporations as well as foreign corporations doing business in Japan and beyond.
How to Compete in the Global Market
The global marketplace provides ample opportunities for companies to expand their business. While cultural values, social behaviors, affordability and legal issues may be challenges for running a successful global business, the principles for success are clear. Only a few global companies can survive in each industry. Most of the rest will get acquired or go out of business.
Successful companies should be able to acquire the best capital, labor and raw materials at the lowest cost globally. And their products and services should meet the diversity of needs of international markets.
Successful companies should excel in one, two or all of three the following:
Excellence in customer services
The Japanese convenience stores 7-Eleven, Lawson and Family Mart have gained acceptance in many countries for their excellent customer service, while the U.S.-based Ritz-Carlton Hotel Company is known the world over for the same .
Excellence in supplying products and services
The company with the number-one product in each market segment can enjoy a premium margin by being the price leader. This allows the company leeway to invest in research and development. Toyota did so and came up with a popular hybrid engine. Apple has had huge success with the iPhone and iPad.
Excellence in business processes
Japanese fashion designer Uniqlo built a top-notch operation of producing and selling their own clothing exclusively. Cisco System’s business is based on fast and efficient IT-based business processes. tj
This article appeared in Issue #271.Click here to order from Amazon