The competition is beginning / has moved from the traditional local markets to a world scenario. The organization needs to be ready and nimble for it.
M&A seems to be the new norm - cultural integration in organizations is imp.... like it is famously quoted - there are 3 rivers in HP ... HP, Compaq & Digital ... coz post merger cultural integration has still not happened & thus HP is still struggling to assimilate Compaq.
Multi-cultural workforces as a result of people migrating to different parts of the world results in greater cultural sensitivity being needed.
Creation of ownership of tasks at each level & de-centralization .... making each person in the organization as much as a business owner as possible.
Changing media for advertisement, mass communication & communication
Necessity to leverage technology
Leveraged Buy-Outs ( Smaller players buying out larger players eg- Tata Corus
De-regulation & Privatization
The fall of communism in Russia .... inefficiencies created in protected companies ....the difficulties competing on a global scale for inefficient companies .... greater eye on creating wealth for the shareholder
Inderminate Industry Boundaries
Getting difficult to identify core -business ... diversification has become the norm. e.g - Videocon group - more than 40 % of its revenue comes from Oil... due to investments made in the sector .... margins are getting lower on certain product lines ... tremendous competition exists from international players ... but does not have the money to scale up in the oil sector too
eg- Diversification - Reliance India
Convergence of computing & mobile communication ... eg- Blackberry, Ifone .... it becomes an advantage for a mobile telephony service provider
to provide these handsets .... Apple moving from a Computer manufacturer into Phones & Music Players ... Diversification within the same media e.g - Google
Number of new industry standard bodies coming up e.g - Healthcare -HIPPA & HL7
Compliance a big task & involves changing existing infrastructure
Cartels forming standards to create barriers to entry
Difficulties in coming up with win-win standards
These are just a few random thoughts... I am sure there are many more things that can be factored in under each head.
Hope I have been of assistance.
20th October 2007