Competitive horizon

Citation

(2009), "Competitive horizon", Strategic Direction, Vol. 25 No. 3. https://doi.org/10.1108/sd.2009.05625cab.001

Competitive horizon

Article Type: Competitive horizon From: Strategic Direction, Volume 25, Issue 3

Lower growth expected in IT spending

A report carried out by IDC has predicted a substantial slowdown for IT spending in 2009. According to the market intelligence firm, the ongoing financial crisis means that the increase in global spending will be 2.6 percent. IDC had previously forecast growth of 5.9 percent. Prior to the crisis, the organization expected 4.2 percent more spending on IT in the US. The revised figure is just 0.9 percent. Similar growth levels are now expected in Japan and Western Europe. The report, as published by IOL Technology (www.ioltechnology.co.za), claims that stronger growth will persist in emerging economies that include Canada, Latin America, Africa, Eastern Europe and the Middle East. However, earlier expectations of double-digit spending increases in these markets are likely to prove unfounded. Spending within the IT sector in 2009 may increase more in computer software and services than for most hardware. Despite this downward revision of growth forecasts, IDC points out that IT remains critical to business success and is thus better positioned than many other industries to counter the economic storm. By 2012, annual spending on IT should rise by around 6 percent.

Indian recovery may be quick

The worldwide financial crisis could provide India with an unexpected source of opportunity, a New York-based think tank has claimed. The Council on Foreign Relations acknowledges the impact of current global problems but suggests that India remains better positioned than most to mount a swift recovery and enjoy strong growth. In a report published by the Economic Times (www.economictimes.indiatimes.com), the organization cites the fact that the country’s financial sector is less vulnerable to currency fluctuations and external factors like US subprime loans. It is likewise felt that cheaper oil imports and higher domestic demand on the back of increases in rural employment and income may continue to stimulate growth. Expanding its economy at a difficult time will further strengthen India’s case for inclusion within international financial bodies like the World Bank and International Monetary Fund to more accurately reflect the importance of key emerging economies.

Brand Canada appeal continues to rise

The latest Country Brand Index has seen Canada climb another four places to be number two behind leader Australia. In 2006, the nation was rated 12th. The Index was complied after a survey of 2,700 businesses and ranks countries on their popularity for visitors based on factors such as natural beauty, environmentalism and the friendliness of its inhabitants. A report published by www.canada.com reveals that growing competition among country brands demands a more holistic approach than marketing on the basis of products and services alone. Canada is becoming increasingly recognized as being family-oriented and safe, and able to offer various city, outdoor and culinary experiences. Australia’s appeal was based on a range of factors, while survey respondents considered the fun spirit of third-placed USA as significant. Italy was ranked fourth mainly on the strength of its culture, geography and food. The top five was completed by Switzerland and its tranquility was likened to that of Canada.

How to prepare for a recession

Adherence to three fundamental principles is essential preparation for surviving testing economic times, a report published by the Daily Telegraph (www.news.com.au) reveals. Accounting firm Pilcher Partners believes that effective two-way communication provides the vital link to positive customer relations, identification of new opportunities and marketplace awareness. Honesty and reliability within the communication process are recognized as being important. Adhering to the principle of establishing positive relations with staff and customers is likewise key. Business leaders should listen to employees and invite their input in the development and implementation of initiatives aimed at improving operations. The knowledge of staff can be invaluable in any efficiency drive or quest to improve sales. A focus on sound financial planning is regarded as the third principle in the report. Organizations need to closely monitor business assets and ensure accountability in order to reduce the probability of poor turnover or slippage occurring. Reducing levels of waste is another benefit of introducing effect control mechanisms.