Chinese and Western firms could experience high returns by investing in Africa’s strong economic growth. Since 2000, at least half of the world’s fastest-growing economies have been in Africa. And by 2030, Africa will be home to 1.7 billion people, whose combined consumer and business spending will total $6.7 trillion. Image: World Bank Seven years ago, the Harvard Business Review pointed out that Africa is also home to many of the world’s biggest opportunities. And yet, despite its tremendous business potential, Africa has not risen to the top of Western business leaders’ agendas. In fact, between 2014 and 2016, US exports to Africa fell by almost half, from $38 billion to $22 billion. And while the United Kingdom’s investments on the continent more than doubled between 2005 and 2014, reaching £42.5 billion ($57.6 billion), only 2.5% of its total exports are to Africa. Western countries are quickly losing ground to China, which increased its exports to Africa more than sevenfold – to $103 billion – from 2005 to 2015. If Western businesses hope to keep up, they will need to tap into the African countries and sectors with the highest potential for growth. By 2030, more than half of Africa’s population will reside in seven countries: Nigeria, Ethiopia, the Democratic Republic of Congo, Egypt, Tanzania, Kenya, and South Africa. But, more important, 43% of Africans will belong to the middle or upper classes, up from 39.6% in 2013, implying considerably higher demand for goods and services. By 2030, household consumption is expected to reach $2.5 trillion, up from $1.1 trillion in 2015. Nearly half of that $2.5 trillion will be spent in three countries: Nigeria (20%), Egypt (17%), and South Africa (11%). But there will also be lucrative opportunities in Algeria, Angola, Ethiopia, Ghana, Kenya, Morocco, Sudan, and Tunisia. Any one of these countries would […]
The Daily News
– by Clayton M. Christensen What do the Honda Supercub, Intel’s 8088 processor, and hydraulic excavators have in common? In The Innovator’s Dilemma they are all examples of disruptive technologies that helped to redefine the competitive landscape of their respective markets. These products did not come about as the result of successful companies carrying out sound business practices in established markets. In The Innovator’s Dilemma, author Clayton M. Christensen shows how these and other products cut into the low end of the marketplace and eventually evolved to displace high-end competitors and their reigning technologies. At the heart of The Innovator’s Dilemma is how a successful company with established products keeps from being pushed aside by newer, cheaper products that will, over time, get better and become a serious threat. Christensen writes that even the best-managed companies, in spite of their attention to customers and continual investment in new technology, are susceptible to failure no matter what the industry, be it hard drives or consumer retailing. Succinct and clearly written. The Innovator’s Dilemma is an important book that belongs on every manager’s bookshelf.
The word globalisation has lost its relevance and lustre with the emergence of the new global economy of the 21st century. In fact, it’s become an anachronism. Its deficiency is that it’s not a new concept which creates nuances of confusion. Globalisation describes the international outreach of countries for the purpose of economic, social, political and cultural liaisons. Global linkages between countries through military conquest, colonisation, multilateral free trade agreements and cultural exchange existed in an uninterrupted continuum in the evolving history of humankind. Historically, however, the process of globalisation has taken different forms, and its meaning has changed and mutated since it was first used in English in the 1930s. For lack of a better word, the term received an extension to its lifeline until the end of the 20th century despite the profound structural changes and technological advances that began to take place in the 1980s. Therefore, globalisation has come to be used to represent “modern” 20th century economics and social processes, including the instant exchange of money enabled by internet technologies. Yet because of its varied historical use, it does not truly reflect the electronic and digital empowerment that has been unleashed by the information technology revolution. Therefore, globalisation is not an accurate descriptor of the 21st century and the internet-driven transformational change sweeping the international economic landscape. And so I have coined the term internetisation which I believe should replace the concept of globalisation. Internetisation: Time, geography are irrelevant Internetisation is the contemporary face of globalization. It includes the modern tools of electronic globalization and embraces the digital connectivity and empowerment of the internet and the World Wide Web. Although we could widen the term globalisation to include internetisation, I believe it is better to replace the word globalisation altogether because the long duration of its […]
Tourism businesses should start by communicating precisely what they are going to do about the situation to the customer – quickly and clearly, to reduce uncertainty and avoid confusion. Russel PJ Kingshott, Senior Lecturer in Retailing, School of Marketing, Curtin Business School, Curtin University There’s nothing like an erupting volcano to reveal who does and doesn’t have their crisis management plans sorted out. Sudden uncontrollable events are an inevitable part of any tourism operation. Businesses worth their salt should at least in principle have the capacity to remedy situations that go wrong, as part of their modus operandi. Conventional marketing wisdom says that when organisations react properly to uncontrollable events, it has positive consequences for their overall relationship with their customers. But for this to be effective, those affected customers need to have a quick response from businesses or it could simply be counterproductive. The closure of Bali’s Ngurah Rai Airport left many passengers stranded. And while the volcano and its ash cloud are beyond airlines’ control, how they respond to the needs of stranded passengers is completely within their remit. How to prepare and handle uncontrollable events Tourism businesses should start by communicating precisely what they are going to do about the situation to the customer – quickly and clearly, to reduce uncertainty and avoid confusion. This needs to be backed up by tangible actions, namely doing the specific things promised and making amends with the customer. Fail to do this, and businesses run the risk of further negative consequences. Speaking from recent personal experience during a short vacation in Bali, Jetstar Australia quickly communicated that relief flights departing from the island would come into operation immediately (weather permitting). They also made it clear to any inbound Bali passengers that there would be no flights bringing them to the island unless longer-term weather conditions were deemed […]
When Katherine Hunt’s dad asked her whether or not he should invest in Bitcoin, alarm bells rang, first she thought “he’s a musician”. Hunt is a lecturer in accounting at the Griffith Business School, and as someone who knows the five stages of a bubble and crash, she was worried when it seemed everyone was thinking they needed to “get in on” Bitcoin. “The stock market is a manifestation of the psychology of everyone who is investing, so of course there is going to be these crazy stages,” Hunt says. There is a boom, as momentum behind a new stock or asset speeds up and the media starts to cover it, fuelling its price rise. Then the euphoria sets in, the value of the asset skyrockets and people start to make a profit. But looming around the corner is the panic. Investors feel the last phase of a crash far more than they do the elation of the price rising, Hunt says. Panic breeds more panic and the price falls. Hunt is seeing this pattern play out with the stocks of the more well known gig economy businesses like Airbnb and Uber. These businesses now enjoy the privilege of being the only, or one of a few of their kind, in the marketplace. But Hunt says this can’t last. “In an open market that’s not the case at all, there’s always going to be competition and these companies will fall. It’s just probably that they’ll fall in 30 or 40 years, not necessarily tomorrow,” she says. Of course this is all easier to see in hindsight. Remembering the global financial crisis John Crosby, now a senior lecturer in finance at the University of Technology Sydney, was once working as an investment banker at Lloyds of London in 2007 when he […]
The victory of David Cameron’s party at the UK elections shows a continuing romance of countries with the middle-class side of politics when you also consider similar governments of such countries as Australian and New Zealand. All British – based political systems going back a long way. The three leaders – Cameron, Abbot and Key – are cut from the same cloth and adhere to similar political philosophies and ways of being. And as they are inclined to govern, they rule over three countries that are leaving a lot of their people behind. This is not to say their parties control the destiny of every citizen’s lives. But it can be said that they are seen to be hugely linked with the status-quo and indicate a push for the blue bloods to continue ruling, maintaining financial control above all else. Today, two days after the British elections there are demonstrations in the streets of London from people concerned about the proposed cuts from the re-elected government.