A recent podcast got me to think of various boundaries that are fast diminishing between developing & developed economies. We all thought after Thomas Friedmans', “The world is flat” that the world is flat but if it was, then their would not be any competitive advantage. If all wage rates were common across the globe then globalization would not exist. But the reality is that the world is very spiky and that's precisely why this is happening. If the world had the same wage rates everywhere, we wouldn't be seeing the rise of ‘GLOBALITY’.
Globalization is actually over, a one-way street. It was about the companies from the U.S. and Europe, and then later on Japan, going to the rapidly developing economies with large populations and very low wage rates and either producing product or buying product, shipping it back to the developed markets, and then shipping over some very high-end and often luxury goods to those markets. So, it was fundamentally a one-way street.
What has changed over the last few years with the rise of the BRIC nations is the emergence of a two-way street. What we have seen over the last five years is not just companies from the West coming to India and China, etc., but companies from India, China, Russia and Brazil becoming real companies that are not just operating in their local markets, but are actually taking their rightful place on the global stage. And, in doing so, they are starting to challenge the traditional multinational companies. Now, it's a two-way street and a competition.
Companies that operate in environments with different spikes, such as low-cost labor, are beginning to use those spikes to their advantage. Then they can build on that advantage by investing in research and development, new product development and distribution.
The opportunities and threats are similar in both developed & developing economies Differential wage rates offer a tremendous advantage relative to companies in the developed economies where wages are expensive.
But if they sit back and just stay local, they'll end up losing the advantage over time, because companies compete on more than just wages. If you want to produce a low-end product, you can do it that way. But you'll need to step out into other markets to learn about how to bring the best of the rest of the world to bear on your own business and if you're not taking a global perspective, your competitors in India or China may come into your market and take your position. The balancing act will be critical and low cost alone won't be enough to win, because at this point in time all the BRIC nations are competing only on that front and there will eventually be a level playing field.
The developed economies or the mature markets must never ignore the potential of consumption of the developing economies. Today with China & India together offering 2.3 bn people of whom at least a billion would be consumers would only grow to add a billion people to your portfolio in the years to come. One of the best examples of this is Nokia and its head on strategy in China & India. They built a position in China in the early days, by selling the traditional way -- by offering a higher-cost Western product. No CUSTOMIZATION.
With the influx of low cost local manufacturers the demand increased from the rich to the masses and Nokia started to lose market share and Nokia was under attack.. Nokia defied the conventional response of retreating and instead moved its product development centre to China and customized for the Chinese consumers. Learning each country is different and nobody understands the consumer there better than their own people. You have to be there, you have to learn, and retreat is not an option.
Nokia regained its 30% market share in China. It then applied the same learning’s in the growing Indian market.
Also it’s only a local member who can bring in the dynamism & creativity that is brought in. e.g. would the developed economies have thought of introducing a car like the Nano. They would have never understood the need for a Nano to produce one. Localization does bring in the flavour.
With the economic downturn there will be more pressure to lower costs, which of course is one of the advantages of operating in developing economies. That may encourage even more Western companies to go beyond their own borders to lower costs, and may also create more opportunities for companies from the BRIC nations. It also may mean more outbound M&A from the developing world, which will give the emerging companies access to brands and technology, possibly at lower prices.
We definitely are heading to a two way street aren’t we?
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Thursday, October 23, 2008
Sunday, October 19, 2008
5 ways to drive traffic to your blog
This is a subject that I guess is most googled by bloggers. How important is it for people to come to your blog?
The 5 key things that a bllogger must focus on are:
1. Write on relevant and current topics
2. Write on topics that would interest people
3. Ping it
4. Subscribe to a whole lot of other blogs that will help you promote it
5. Comment on other blogs frequently
Where is the content my friend I ask as I read these popular blogs?
Blogs are more often written as extensions and expressions of peoples personalities. They are views you would like to share with people. How can you customize content to what others would like to read and not what you believe in.
But the other side of the coin also says that if you want more and more poeple to know or believe in your thoughts you will have to get it across to more people. And for that if you have to do the above 5 with content as priority. I suggesst you do it but without compromising on content.
All good things in life also need a push...
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The 5 key things that a bllogger must focus on are:
1. Write on relevant and current topics
2. Write on topics that would interest people
3. Ping it
4. Subscribe to a whole lot of other blogs that will help you promote it
5. Comment on other blogs frequently
Where is the content my friend I ask as I read these popular blogs?
Blogs are more often written as extensions and expressions of peoples personalities. They are views you would like to share with people. How can you customize content to what others would like to read and not what you believe in.
But the other side of the coin also says that if you want more and more poeple to know or believe in your thoughts you will have to get it across to more people. And for that if you have to do the above 5 with content as priority. I suggesst you do it but without compromising on content.
All good things in life also need a push...
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Indian Mujahideen or Simi
With Terrorism spreading its reach across borders and especially in India and all the media trying to uncover who these so called extremists or jihadis are? After each terror strike he media does not fail to come out with a special on either the outfit responsible for the attack, or how it was performed, its impact,the strategy future repercursions.
How does it matter which outfit it is? Whether its the Al - Quaida, Indian Mujahideen, the Simi, LET, or any new outfit that's just mushroomed. The point is the belief and the extremism that these people believe in that needs to be attacked vs. the outfit.
The police will never be able to kill terrorism or erode it by chasing these outfits . Change the name and it anyways loses its identity, it's the thought, the belief, the fundamentalism, the hatred which is ingrained in these people that needs to be addressed. Unless that is done this battle is a lost one. it is foolish to fight this battle with mere names.
These fundamentalist don't belong to Islam, Christianity, Hinduim. They are people who want to create their own releigion and believe in what they want to believe in irrespective of what the religion teaches. They are criminals performing under the garb of religion.
My only plea would be don't run after the names, it's the cause that needs to be addressed.
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How does it matter which outfit it is? Whether its the Al - Quaida, Indian Mujahideen, the Simi, LET, or any new outfit that's just mushroomed. The point is the belief and the extremism that these people believe in that needs to be attacked vs. the outfit.
The police will never be able to kill terrorism or erode it by chasing these outfits . Change the name and it anyways loses its identity, it's the thought, the belief, the fundamentalism, the hatred which is ingrained in these people that needs to be addressed. Unless that is done this battle is a lost one. it is foolish to fight this battle with mere names.
These fundamentalist don't belong to Islam, Christianity, Hinduim. They are people who want to create their own releigion and believe in what they want to believe in irrespective of what the religion teaches. They are criminals performing under the garb of religion.
My only plea would be don't run after the names, it's the cause that needs to be addressed.
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Sea of Change
What a wonderful thing change can be and how much we resist it. Last week I met an old friend who had a few months ago given up his cushy job as an investment banker only to pursue his first love, teaching. He had to give up his well appointed Malabar Hill apartment, his club memberships, even his holidays abroad, but the peace and contentment on his face was worth seeing. He walked, lived likely finally he found his ground, his calling, his life. Of course there had been trepidation, would his daughter adjust to the change in lifestyle, school, miss the luxuries of life.
Did he deprive her of it, was he being selfish. Is giving up luxury for love foolish? Once the moment passes by those luxuries seem petty, those friends who didn’t hold on with your status change seem worthless.
If they didn’t support your calling they weren’t your friends. If you cease to be reason enough to your friends, you were definitely treading the wrong path. Change. How much we fear it. And how important it is for us to experience it. And any change, not only when good things happen to us, but also when the bad things occur.
Life is, as any enlightened sage will tell you, is a constant interplay of interconnected opposites, good and bad, happy and sad, kind and cruel. In what doses no one can say, but what s absolutely certain is that nothing lasts forever, and change is inevitable. We are all so adaptable that we will survive and learn the tricks of the new trade. After a while we will also enjoy the new trade. You will survive and then live. Its only a matter of time.
My friend who chucked his job as a banker now has time to read to his daughter, accompany his wife to the plays she longed to see hand in hand and read the book he always wanted. Its not all hunky dory, there are the inevitable lows as well. But he says for 24 years I hung on to my job as a banker and worked myself to sickness and death so frightened of losing it; or not reaching the top, or not performing to my bosses expectations. And then finally when I let go, the relief was so much. I confronted my worst fear and insecurity and found that I had still survived.
Change. See what you hold dear in your life, what you cling to, and hanker for. And be courageous and let go. Go with the flow, don’t surrender to life, be that unpredictable crazy river that decided her own course and is never scared to chase her dreams, her heart. Jump with out looking. And you will see that the safety net will always be there. It might not be the net you wanted. But something for someone will be there to break your fall, and hold you.
Change something. Anything. Remove just one thing, from your life, and see what life puts back in as a surprise.
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Did he deprive her of it, was he being selfish. Is giving up luxury for love foolish? Once the moment passes by those luxuries seem petty, those friends who didn’t hold on with your status change seem worthless.
If they didn’t support your calling they weren’t your friends. If you cease to be reason enough to your friends, you were definitely treading the wrong path. Change. How much we fear it. And how important it is for us to experience it. And any change, not only when good things happen to us, but also when the bad things occur.
Life is, as any enlightened sage will tell you, is a constant interplay of interconnected opposites, good and bad, happy and sad, kind and cruel. In what doses no one can say, but what s absolutely certain is that nothing lasts forever, and change is inevitable. We are all so adaptable that we will survive and learn the tricks of the new trade. After a while we will also enjoy the new trade. You will survive and then live. Its only a matter of time.
My friend who chucked his job as a banker now has time to read to his daughter, accompany his wife to the plays she longed to see hand in hand and read the book he always wanted. Its not all hunky dory, there are the inevitable lows as well. But he says for 24 years I hung on to my job as a banker and worked myself to sickness and death so frightened of losing it; or not reaching the top, or not performing to my bosses expectations. And then finally when I let go, the relief was so much. I confronted my worst fear and insecurity and found that I had still survived.
Change. See what you hold dear in your life, what you cling to, and hanker for. And be courageous and let go. Go with the flow, don’t surrender to life, be that unpredictable crazy river that decided her own course and is never scared to chase her dreams, her heart. Jump with out looking. And you will see that the safety net will always be there. It might not be the net you wanted. But something for someone will be there to break your fall, and hold you.
Change something. Anything. Remove just one thing, from your life, and see what life puts back in as a surprise.
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Cardiac Confusion
Half of life's misery comes because of others in your life. Usually (and this is the supreme contradiction) it comes from those you love most. Your own nest becomes a noose; cactus grows in the mulberry bush. And you go blaming yourself. The others who hurt, trouble, torment ought to be the ones going through cause it's because of them that you are going through it, but what do you know – heart hammerer is out on a lucky limb and you are paying with the price of uncried tears.
Not just tears but restless days, sleepless nights and a carnival of cardiac confusion.
Get this straight: you will always be unhappy if you allow your happiness to be determined by other people. You will do your best, you will spray rose petals before they walk, but they won’t think a minute before walking over you or out on you. You give someone the key tp to your piece of mind and they will take your mind. Always the others. Nothing personal. It’s never personal. People hurt you because they are deficient in some way. People don’t respect you because they don’t know what respect means or is. People treat you badly because they don’t know otherwise. People cheat on you and get into adulterous affairs or cheap one night stands because they don’t know your worth – and in all probability their own.
The bad choices people make in their life, reflect on yours, in some divine way those who are out of your life are meant to be out. Don’t march to their doomed drums. It’s their upbringing. Their breeding. Their lifescape. You’re good you’re better than good, why are you raking their sanity? The problem is out there , not in you. If people don’t know who you are, then never mind how much they mean to you, ask them to go walk. Nobody, and I repeat nobody is worth the price of your self respect. In my life, self respect ranks higher than even love. You are a child of god. If god doesn’t treat you this way, who is anybody else to?
People see the world not as is, but as they are. People have their own luggage, their own scars, their own weaknesses, their own misery. Behind their own bravado their own life is falling apart so they try to make yours too. Don’t be fooled or awed by people who have power over you. They only have it because you have given it to them. Usually the biggest bullies are the biggest cowards. The ones who make the most noise are silenced souls. All the banter, swagger, tough-talk chaos a remarkably low opinion of self and life bereft of any joy.
Only unhappy people make others unhappy. Wife-beaters, cheating siblings, ungrateful lovers, rude bosses, callous youngsters, indifferent friends are all a reflection of their own inadequacies. A happy, balanced person will treat you well because that’s how a happy, balanced person is treated.
Today know most of your problems are not your problems but others people’s problems. You’re fine, you’re better than fine and you’ll get along fine. The best part of your life is you, the best friend is god and you’ve been burying yourself and god. God will never hurt you, it’s the wrong people you choose who do.
Life is beautiful, you are beautiful, it’s the outside world that is ugly. Just allow god in, then close the door, change the locks and bring the champagne out. I never feel sorry for who or what I’ve lost, I just feel sorry for the things and people who’ve lost me. Because I know the circle of life completes itself for the faithful. You’ll win in the end, but to win in the end, play your life with some more dignity, play it with grace, play it with gratitude and play it with the awesome love of god that is just waiting to be part of your life.
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Not just tears but restless days, sleepless nights and a carnival of cardiac confusion.
Get this straight: you will always be unhappy if you allow your happiness to be determined by other people. You will do your best, you will spray rose petals before they walk, but they won’t think a minute before walking over you or out on you. You give someone the key tp to your piece of mind and they will take your mind. Always the others. Nothing personal. It’s never personal. People hurt you because they are deficient in some way. People don’t respect you because they don’t know what respect means or is. People treat you badly because they don’t know otherwise. People cheat on you and get into adulterous affairs or cheap one night stands because they don’t know your worth – and in all probability their own.
The bad choices people make in their life, reflect on yours, in some divine way those who are out of your life are meant to be out. Don’t march to their doomed drums. It’s their upbringing. Their breeding. Their lifescape. You’re good you’re better than good, why are you raking their sanity? The problem is out there , not in you. If people don’t know who you are, then never mind how much they mean to you, ask them to go walk. Nobody, and I repeat nobody is worth the price of your self respect. In my life, self respect ranks higher than even love. You are a child of god. If god doesn’t treat you this way, who is anybody else to?
People see the world not as is, but as they are. People have their own luggage, their own scars, their own weaknesses, their own misery. Behind their own bravado their own life is falling apart so they try to make yours too. Don’t be fooled or awed by people who have power over you. They only have it because you have given it to them. Usually the biggest bullies are the biggest cowards. The ones who make the most noise are silenced souls. All the banter, swagger, tough-talk chaos a remarkably low opinion of self and life bereft of any joy.
Only unhappy people make others unhappy. Wife-beaters, cheating siblings, ungrateful lovers, rude bosses, callous youngsters, indifferent friends are all a reflection of their own inadequacies. A happy, balanced person will treat you well because that’s how a happy, balanced person is treated.
Today know most of your problems are not your problems but others people’s problems. You’re fine, you’re better than fine and you’ll get along fine. The best part of your life is you, the best friend is god and you’ve been burying yourself and god. God will never hurt you, it’s the wrong people you choose who do.
Life is beautiful, you are beautiful, it’s the outside world that is ugly. Just allow god in, then close the door, change the locks and bring the champagne out. I never feel sorry for who or what I’ve lost, I just feel sorry for the things and people who’ve lost me. Because I know the circle of life completes itself for the faithful. You’ll win in the end, but to win in the end, play your life with some more dignity, play it with grace, play it with gratitude and play it with the awesome love of god that is just waiting to be part of your life.
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