The CEO agenda for strategy and growth

How local is your global growth strategy?

How local is your global growth strategy?

As CEOs focus on getting their business models right for an interconnected global economy, many recognize that the sources of growth are very much local. Consider changing customer demand, the biggest driver of change to US corporate strategy. Success involves understanding customer segmentation – such as rural-urban and high income-low income -- and the dynamics driving it. For example, Africa, the new frontier for global businesses, comprises more than 50 countries at different stages of development and with varied practices and regulations.

Even the vast markets of China and India are hardly monolithic, as evident from their cultural diversity, inconsistent provincial government policies, etc. Having a truly global strategy is about continuously rebalancing opportunities and risks, encompassing business imperatives such as talent, innovation, and regulation, at local levels.

Quotes

David Cote
Chairman and CEO, Honeywell

"We’ve certainly seen much more innovation coming from outside the US. Ten years ago, less than 40 percent of our sales were outside the US. Today it’s approximately 55 percent. We’ve grown from a $22-billion company to a $37-billion company. You don’t do that by simply taking US products and selling them somewhere else. You have to innovate, design, manufacture, and source locally to be successful anywhere. For instance, we talk about the need to develop products in India and China, for sales both in those countries and in other markets, including the US."
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The CEO agenda