1. New Power Brokers
- Social networks
- G20, which gives developing economies a greater voice in global issues.
- New financial power brokers – RDE central banks, sovereign wealth funds, private equity and hedge funds – and stateholders bearing stimulus funding along with their constituent tax-payers.
- The relative influence of the US, Japan and Europe is likely to decline under the burden of heavy national debts, driving more internal focus and reducing their ability to fund international projects of all types whether aid, military or scientific. The age of the “superpower” is giving way to an age of multiple power brokers.
2. Blurring of Industry Boundaries
- Value spaces are increasingly being defined by consumers, not firms.
- Example: health and wellness – in the consumer’s mind this extends well beyond pharmaceuticals and doctors to food, fitness, beauty, online services and more.
- As boundaries blur and everything becomes mobile, firms are increasingly interdependent, having to balance how they compete and cooperate with others, potentially fulfilling multiple roles in a network or across industries.
- This extends to interactions with society, where new forms of networks and smart partnerships are emerging.
3. The New Consumer
- More consumers globally with more wealth.
- The new consumer wants more involvement and personalization, wants it all anywhere, anytime, and wants it to be cheap and chic as the climate of frugality bites.
- Businesses at all points in the value chain are trying to connect with the consumer to build reputations, trust, loyalty, returns, and market position.
4. Generational gaps
- For the first time, four distinct generations are present in the workforce in many developed countries. The resulting differences in generational ambitions, attitudes, technology skills and ethics are impacting management styles, how work is done and the ability to attract talent.
- In developing economies, traits and values are becoming more similar within generations across borders (i.e. globalizing), than between generations within a country or region.
5. Tensions of globalization AND fragmentation
- Globalization and integration continues, but there is also a growing, opposing trend towards fragmentation – tribalism, nationalism and cultural conflict is on the rise (e.g. anti-globalization protests or the break up of states).
- Governments are increasingly seeking to erect national boundaries to block or monitor internet content, and technology providers develop proprietary “clouds”.
Image credit: tuppus
Kevin Roberts is the CEO worldwide of The Lovemarks Company, Saatchi & Saatchi. For more information on Kevin, please go to www.saatchikevin.com. To see this blog at its original source, please go to www.krconnect.blogspot.com.I