{"id":21782,"date":"2010-11-06T12:33:09","date_gmt":"2010-11-06T12:33:09","guid":{"rendered":"http:\/\/alienbabeltech.com\/main\/?p=21782"},"modified":"2010-11-09T07:27:16","modified_gmt":"2010-11-09T07:27:16","slug":"business-must-constantly-look-to-plan-for-tomorrow","status":"publish","type":"post","link":"http:\/\/alienbabeltech.com\/main\/business-must-constantly-look-to-plan-for-tomorrow\/","title":{"rendered":"Business Must Constantly Look to, Plan for Tomorrow"},"content":{"rendered":"<p><script type=\"text\/javascript\">\/\/ <![CDATA[\n                   google_ad_client = \"pub-7021221536180758\"; \/* 468x60, created 11\/11\/09 *\/ google_ad_slot = \"1949837292\"; google_ad_width = 468; google_ad_height = 60;\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\" type=\"text\/javascript\">\n<\/script><\/p>\n<blockquote>\n<h6><span style=\"color: #00ccff;\">The following is by G. A . &#8220;Andy&#8221; Marken, President of <a href=\"http:\/\/www.markencom.com\/index.htm\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.markencom.com\/index.htm', 'Marken Communications']);\" ><span style=\"color: #00ccff;\">Marken Communications<\/span><\/a><span style=\"color: #00ccff;\"> Inc. He has kindly given us permission to republish his thought-provoking article. As with everything that we publish at AlienBabelTech, the opinions expressed are solely those of the individual writer and do not necessarily reflect the views and the <strong>opinions of the rest of the ABT staff.<\/strong><\/span><\/span><strong><span style=\"color: #00ccff;\"> <\/span><span style=\"color: #00ccff;\"><span style=\"color: #00ccff;\"> \u2013Mark Poppin,<\/span> <span style=\"color: #00ccff;\">ABT Senior Editor<\/span><\/span><\/strong><\/h6>\n<\/blockquote>\n<p><strong> <\/strong><\/p>\n<blockquote><p><a href=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21783\" title=\"Untitled-1\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-11.jpg?resize=361%2C241\" alt=\"\" srcset=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-11.jpg?resize=361%2C241 361w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-11-300x200.jpg 300w\" sizes=\"auto, (max-width: 361px) 100vw, 361px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p><em><strong>&#8220;<\/strong>There must be alternatives. You must have some technology that could solve our problem.\u201d<\/em> <strong>\u2013 Professor Barnhardt, The Day the Earth Stood Still, 2008<\/strong><\/p><\/blockquote>\n<p>Even though a few companies have sold 10M +\/- tablets and phones in the US and are slowly, painfully rolling them out in other wealthy consumer markets (Japan, North America, Europe), that\u2019s only a drop in the proverbial consumer population bucket.<\/p>\n<p>There\u2019s are 300 million potential consumers in the US and a whopping six billion plus around the globe.<\/p>\n<p>Today, the Gross Domestic Product (GDP) growth in the wealthy countries is modest (at best), and the outlook for the next 10 years isn\u2019t overly aggressive.<\/p>\n<p>The \u201cbuy low, sell high\u201d approach \u2013 buying components, manufacturing \u201csomewhere\u201d at the lowest possible price and selling them for optimum profit to folks in the wealthy areas is becoming more challenging.<\/p>\n<p>That\u2019s why businesses are becoming more serious about reaching, influencing emerging economy consumers.<\/p>\n<p>Almost any senior executive worth his\/her huge paycheck knows it\u2019s \u201cthe place to be,\u201d but according to McKinsey &amp; Company research, less than one-third of the firms have taken any steps to get involved.<\/p>\n<p>Some have taken the \u201cbold move\u201d of developing new, lower-cost products or services for the fast-growing, middle-income consumers in countries such as China and India. \u00a0These organizations identify themselves as global firms, but aren\u2019t quite certain how to leverage their opportunities in the economic activities between and within regions.<\/p>\n<p><strong>Brave New World<\/strong><\/p>\n<p>The solution?<\/p>\n<p>A completely new strategy is needed that specifically targets sales in the emerging countries where there are more potential customers.<\/p>\n<p>Some will hear Mr. Wu\u2019s (James Hong) words ringing in their ears, <em>\u201cI had a dangerous assignment. This is hostile territory.\u201d<\/em><\/p>\n<p>There are a number of sound reasons for the urgency of the effort, according to McKinsey:<\/p>\n<ul>\n<li>Retail sales in the BRIC (Brazil, Russia, India, China) are growing 10-15 fold and middle-class is not a short-lived phenomenon<\/li>\n<li>The population of industrialized countries is aging.<\/li>\n<li>Asian populations comprise more than half of the people on the planet with China, India \u00a0(lands of 1 billion\u2013plus consumers)<\/li>\n<\/ul>\n<ul>\n<li>The economies of Asia\u2019s big four &#8212; China, India, Malaysia and Singapore \u2013 are the epicenters of the PC\/CE\/communications world.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-21.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21784\" title=\"Untitled-2\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-21.jpg?resize=422%2C355\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-21.jpg?resize=422%2C355 422w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-21-300x252.jpg 300w\" sizes=\"auto, (max-width: 422px) 100vw, 422px\" data-recalc-dims=\"1\" \/><\/a>Because they are opening up with relatively few restrictions, these consumer markets represent the largest \u201cniche play\u201d opportunity in the history of world commerce.<\/p>\n<p style=\"text-align: center;\"><strong>Product Market Freedom Matrix<\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<blockquote><p><a href=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-31.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21785\" title=\"Untitled-3\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-31.jpg?resize=398%2C424\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-31.jpg?resize=398%2C424 398w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-31-281x300.jpg 281w\" sizes=\"auto, (max-width: 398px) 100vw, 398px\" data-recalc-dims=\"1\" \/><\/a><strong> <\/strong><strong>Figure 3 &#8211; Opportunity Ranges \u2013 <\/strong>While emerging countries<strong> <\/strong>have a wide range of restrictions and free operations, the opportunities in the PC\/CE\/content\/communications industries<strong> <\/strong>are relatively open for companies.\u00a0 The challenge is always a consistent policy.<\/p><\/blockquote>\n<p>So why are these emerging markets so important \u2013 to all of us?<\/p>\n<ul>\n<li>Executives across the business spectrum agree that technological innovation, consumer goods, IT are the driving forces for your business and home life.<\/li>\n<\/ul>\n<p><strong> <\/strong><\/p>\n<p><a href=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-41.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21786\" title=\"Untitled-4\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-41.jpg?resize=450%2C277\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-41.jpg?resize=450%2C277 450w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-41-300x184.jpg 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p><strong>Source:\u00a0 McKinsey &amp; Company <\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<p><strong> <\/strong><\/p>\n<p><a href=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-51.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21787\" title=\"Untitled-5\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-51.jpg?resize=385%2C280\" alt=\"\" srcset=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-51.jpg?resize=385%2C280 385w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-51-300x218.jpg 300w\" sizes=\"auto, (max-width: 385px) 100vw, 385px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p>Source:\u00a0 IDC<\/p>\n<p>Frankly, we\u2019ve cried \u201c<em>Uncle!\u201d<\/em> because our garage is crammed with stuff and there\u2019s no more room for more stuff.<\/p>\n<p>Our neighbors are in the same boat.<\/p>\n<p>It used to be that if you wanted to sell high-end (read expensive) goods you sold them to the Japanese.<\/p>\n<p>But the world\u2019s second largest consumer market is now acting like its Western peers:<\/p>\n<ul>\n<li>They were hit hard by the economic downturn and their economy has been weak for about two decades.<\/li>\n<li>They are anxious, nervous about the future and have changed their buying\/saving habits.<\/li>\n<li>The kids (in their 20s) never knew the good times and have been nicknamed hodo-hodo zuko (so-so folks) shunning corporate life and more material possessions<\/li>\n<li>They are less inclined to pay for convenience: to \u201cspend time to save money,\u201d rather than \u201cspend money to save time.\u201d<\/li>\n<li>They are shunning department stores for outlets that satisfy their needs beyond shopping (big-box discounters like Best Buy, Wal-Mart and large-format retailers like Costco, Ikea).<\/li>\n<\/ul>\n<p>Klaatu (Keanu Reeves) told the Japanese, <em>\u201cYou&#8217;ve been out of contact for a long time.\u201d<\/em><\/p>\n<p><strong>Shop for Tomorrow<\/strong><\/p>\n<p>As with almost everyone on the planet, they are online and they\u2019re&#8230;<strong><em>shopping!<\/em><\/strong><\/p>\n<p><a href=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-61.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21789\" title=\"Untitled-6\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-61.jpg?resize=416%2C228\" alt=\"\" srcset=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-61.jpg?resize=416%2C228 416w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-61-300x164.jpg 300w\" sizes=\"auto, (max-width: 416px) 100vw, 416px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p>Source:\u00a0 Internetworldstats.com<\/p>\n<p>No big deal you say?<\/p>\n<p>English-language television, music, film, print, social media English is presently the <em>lingual franca. <\/em>About two billion speak it \u2013 half as a second language.<\/p>\n<p>Most of the \u201cnew market\u201d consumers (their number is expected to double in the next two years) don\u2019t speak English.<\/p>\n<p>The English-speaking Internet\/Web is about saturated (like you didn\u2019t notice?) so these countries represent most of the future online growth (Google, Facebook, others may have to start suckin up!).<\/p>\n<p>You and we both know ecommerce is language-based.\u00a0 According to a Common Sense Advisory survey:<\/p>\n<ul>\n<li> 52% will only buy from Web sites in their language.<\/li>\n<li> 64% would pay more to get product information in their language (Cripes, so would we!).<\/li>\n<li> The majority of people will shun localized Anglocentric sites for ones that accommodate their language, writing systems, conventions.<\/li>\n<\/ul>\n<p>Ask Web folks and they\u2019ll tell you that ain\u2019t easy.\u00a0 It requires:<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Smarter data intake processes, record storage, linkages in addition to IT expertise they need cultural, linguistic expertise software, systems that adapt quickly, easily for a non-English user base.<\/p>\n<p>Looking at the task, Helen Benson (Jennifer Connelly) said, <em>\u201cWe can change. We can still turn things around.\u201d<\/em><\/p>\n<p>A foothold and expansion in the emerging markets is important because they have a growing middle class and more disposable income.\u00a0 As in the more mature areas, they lust for Internet, Web-enabled devices and applications.<\/p>\n<p>While there is tremendous concern over the protection of IP (intellectual property), companies are proceeding \u2013 albeit cautiously \u2013 in the fertile emerging markets.<\/p>\n<p><a href=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-7.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21788\" title=\"Untitled-7\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-7.jpg?resize=450%2C148\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-7.jpg?resize=450%2C148 450w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-7-300x98.jpg 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p><strong>Source:\u00a0 McKinsey &amp; Company <\/strong><\/p>\n<p>To do it, management has to:<\/p>\n<ul>\n<li>retool existing business models<\/li>\n<li>reconfigure price\/value equations (often localizing      even within countries)<\/li>\n<li>closely monitor market volatility and have      plans\/options in place to respond to conditions, risks<\/li>\n<li>combine the best, smartest local resources with      access to the company\u2019s overall knowledge base<\/li>\n<li>maintain close, continual, open communications      between the headquarters and the local company<\/li>\n<\/ul>\n<p>The best way to ensure failure is to come in and announce as Regina Jackson (Kathy Bates) did, <em>\u201cI&#8217;ve been sent here to determine who or what you represent and what your intentions are.\u201d<\/em><\/p>\n<p>You may not like the answer<em>\u2026\u201cIt would only frighten you.\u201d<\/em><\/p>\n<p><em> <\/em><\/p>\n<p><strong>New Challenges<\/strong><\/p>\n<p>The key for every player in the market is people.\u00a0 That means innovative approaches to sourcing talented employees, either from the global labor markets or optimizing the use of older workers.<\/p>\n<p>Technology will help organizations materially reshape consumer awareness, choice.\u00a0 Organizations that do the best job of tapping that technology will significantly improve their competitive advantage.<\/p>\n<p>The truth is, the worst is behind us and the world is moving again.<\/p>\n<p>Now companies can shift their strategic planning from crisis mode to a consideration of short-term profitability and long-term strategic issues.<\/p>\n<p><strong> <\/strong><\/p>\n<p><a href=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-8.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21790\" title=\"Untitled-8\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2010\/11\/Untitled-8.jpg?resize=224%2C248\" alt=\"\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p>The road to product success and profits isn\u2019t a straight line.<\/p>\n<p>Mr. Wu was probably referring to those who know the challenge\/opportunity but do nothing when he said, <em>\u201cThey sense it. But they can&#8217;t seem to do anything about it.\u201d<\/em><\/p>\n<p>If this orb we\u2019re on isn\u2019t going to stand still, we might as well plug away opening new markets, new opportunities around the globe.<\/p>\n<p># # #<\/p>\n<div><strong>By  G.A. &#8220;Andy&#8221; Marken<\/strong><\/div>\n<p style=\"padding-left: 30px;\"><strong>President<\/strong><strong> Marken Communications, Inc. <\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong> <a href=\"mailto:Andy@markencom.com\">Andy@markencom.com<\/a><\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong><br \/>\n<\/strong><\/p>\n<blockquote><p>Please join us in our <a href=\"http:\/\/alienbabeltech.com\/abt\/index.php\" target=\"_blank\">Forums<\/a><\/p>\n<p>Become a Fan on <a href=\"http:\/\/www.facebook.com\/pages\/AlienBabelTech\/123268467142\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.facebook.com\/pages\/AlienBabelTech\/123268467142', 'Facebook']);\" target=\"_blank\">Facebook<\/a><\/p>\n<p>Follow us on <a href=\"http:\/\/twitter.com\/alienbabeltech\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/twitter.com\/alienbabeltech', 'Twitter']);\" target=\"_blank\">Twitter<\/a><\/p>\n<p>For the latest updates from ABT, please <a href=\"http:\/\/alienbabeltech.com\/main\/?feed=rss2\" target=\"_blank\">join our RSS News Feed<\/a><\/p>\n<p>Join our Distributed Computing teams<\/p>\n<ul>\n<li>Folding@Home &#8211; Team AlienBabelTech &#8211; 164304<\/li>\n<li>SETI@Home &#8211; Team AlienBabelTech &#8211; 138705<\/li>\n<li><a href=\"http:\/\/www.worldcommunitygrid.org\/reg\/viewRegister.do?teamID=3P39R3SRV1\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.worldcommunitygrid.org\/reg\/viewRegister.do?teamID=3P39R3SRV1', 'World Community Grid &#8211; Team AlienBabelTech']);\" target=\"_blank\">World Community Grid &#8211; Team AlienBabelTech<\/a><\/li>\n<\/ul>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The following is by G. A . &#8220;Andy&#8221; Marken, President of Marken Communications Inc. He has kindly given us permission to republish his thought-provoking article. As with everything that we publish at AlienBabelTech, the&#46;&#46;&#46;<\/p>\n","protected":false},"author":396,"featured_media":21790,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2533,6],"tags":[3563,4274,4273,3294],"class_list":["post-21782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-abt-news","category-news","tag-business-plan","tag-emerging-markets","tag-global-markets","tag-internet-marketing"],"_links":{"self":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts\/21782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/users\/396"}],"replies":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/comments?post=21782"}],"version-history":[{"count":0,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts\/21782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/media\/21790"}],"wp:attachment":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/media?parent=21782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/categories?post=21782"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/tags?post=21782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}