Giving wings to success in a competitive world

Strategic Change is not a choice in today’s world. It is necessary and unless adhered to, companies will be left behind. Therefore, to stay relevant and competitive in a world that is continuously becoming more volatile and unpredictable, companies must evolve strategically by adopting new technology, restructuring business operations, and responding to frequently changing consumer behavior with agility.

- By S K NAG

Recent shifts and trade barriers are fast impacting the friendly environment of the business ecosystem globally. Trade-off strategies, which involve balancing competitive advantage and disadvantages, are no longer helpful because of the stringent upmanship of influential countries. This disrupts the natural comparative advantage, and forces countries to produce goods they were better off importing, violating the very trade-off theory of optimal resource allocation. This trade war will lead to retaliation theory of cross implementation of higher tariff structure, creating a massive trade gap in the end. Global supply chain, FDI (Foreign Direct Investment), cost of goods to consumers, and unpredictable job cuts are cascading impacts of trade and tariff disruption. In short, tariffs and trade wars disrupt the free flow of goods, distort prices, and misallocate resources.

Many organizations implement changes quickly, considering a sudden leap, which can result in disruptive, uncertain, chaotic, and undesirable outcomes like misalignment, resistance and failure. The geo political situation has already affected global business transactions, damaging the worldwide economy. Multidimensional business impacting factors like conflicts, volatility, pandemics, climate change, and social unrest are all putting pressure on business houses to see their future through different lenses because all these challenges contribute adversely and increase uncertainty, forcing them to assess the world’s economic prospects differently.