By Reid Walker, Lenovo
With the global economy in upheaval, traditional distinctions between consumer and producer nations, and between developed and emerging markets has blurred, creating promise and peril for multinationals as the early “shoots” of economic recovery take root.
1. Brazil, Russia, India and China are evolving into vast market economies, and many smaller economies are making similar progress. China has emerged as today’s third largest economy and is poised to surpass the United States in GDP before mid-century, with countries like India and Brazil not far behind.
2. Demographics and education levels are changing. The population of the Western world is growing older relative to that of the East. Brazil, Russia, India, and China have a high and growing percentage of college educated adults; now approaching 20% - second only to the United States.
3. Widespread use of information and communication technology is changing the world. The PC, the internet, and inter-operable software have made real instantaneous communication on a global scale. This development has forever altered all facets of our economic, political and social lives.
The PC has been a key enabler of evolution to world sourcing. Lenovo, partly because of its origins, has pioneered its use in the PC industry. Its world sourcing approach to business has created a platform for success and leadership. A new kind of company that blends the best thinking of East and West is emerging to meet the needs of a changing world.
What did it take for us to be a world sourced company? World sourcing meant locating resources strategically to serve key markets globally. That meant having the most talented and innovative people, the strongest infrastructure, the deepest language proficiency, the finest technology capabilities, the most efficient operations and facilities, wherever they are best available to sell wherever profitable markets exist. Easy to say…
Our World sourcing addresses 3 key challenges in getting closer to customers.  First, competition has no borders: you can’t hide from high-value, low-cost offerings. Second, customer service is critical, but it is harder to deliver well because it demands increased knowledge of local markets, cultures and business practices including underserved consumers in developing market economies. Third, in a world with essentially one time zone, we have to source materials, innovation, talent, logistics, infrastructure, and production wherever they are best available. And we sell wherever a profitable market exists, anywhere in the world.
In today’s economic climate, companies must world source or perish. It is that simple…
Reid Walker, is Vice President Global Communication at Lenovo, one of the 3 leading global PC suppliers.
