Model-based Competition

1510.jpgMay 2008 | By José Almagro. Executive Chairman. Bayes Inference S.A. and Professor at IE Business School

Companies that adopt a modelling strategy to anticipate, identify and satisfy customersâ?? requirements will not only obtain basic competitive advantages over companies that do not, they will end up pushing them out of the market.

My theory goes like this: companies that adopt a modelling strategy to anticipate, identify and satisfy customersâ?? requirements will not only obtain basic competitive advantages over companies that do not, they will actually push them out of the market.

The modelling strategy is not just another strategy in a repertoire of feasible options, but rather a controlling strategy. This dominance is due to two coordinates. Firstly, given a certain set of activities, the use of models produces optimum combinations and is therefore the most effective way of organizing said set of activities.

Secondly, companies equipped with this strategy are more innovative and reduce the costs associated with misguided innovations. In short, operational and economic efficiency, early diagnosis of market, customer and policy trends, and innovative drive constitute the three key factors that turn a modelling strategy into a controlling strategy.

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Where are the Chinese executives?

1507.jpgMay 2008 | By Elena Escagedo, Director of Open Enrolment Programs at IE Business School, Executive Education

Give me the name of a high-level Chinese business executive. Canâ??t think of one? And who is the owner of this Asian superpowerâ??s largest business fortune? Donâ??t know that either? Well, neither does anyone else, actually: so whatâ??s going on in Beijing?

China has been growing at double-digit rates for several years now. India is growing somewhat slower but also shows spectacular development. China is currently the fourth largest economy in the world and if the dollar continues to fall, it will quite possibly be the leading economy on the planet in a short period of time. Moreover, if this trend of growth in China and India continues, both economies will represent around 25% of the world GDP by the year 2025.

Although this information is well known, there is one question that needs to be asked about these countries: why are there Indian executives in important executive positions in some 30 companies on the Fortune 500 and yet there are no Chinese executives on the list? Paradigmatic cases include the Pepsico CEO (Indra Nooyi, a woman) and that of Vodafone (Arun Sarin). However, we can go even further: why, according to the Forbes magazine, are entrepreneurs of Indian origin among the ten richest people in the world while there are no Chinese entrepreneurs? The only entrepreneur of Chinese origin in the ranking of the 50 richest people in the world (in tenth place) is Li Ka Shing, with his Cheung Kong Holdings conglomerate, whose flagship is Hutchinson Wampoa, world leader in seaport management. Li Ka Shing was born in Guangdong, China in 1928 but has developed his career in Hong Kong since the 1950s. Meanwhile, Forbes places four Indian entrepreneurs (Lakshmi Mittal, Mukesh Ambani, Anil Ambani and Kushal Pal Singh) in fourth, fifth, sixth and eighth position of the 50 richest people in the world.

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艰难困苦,玉汝于成!!

这是一场无路可退的“战争”。北京时间2008年5月12日14时28分,四川发生7.8级地震,全国十多个省市有明显震感,人员伤亡惨重。这场罕见的灾害,是对中华民族的又一次磨砺。艰难困苦,玉汝于成,悠久华夏度过了无数惊涛骇浪。同胞们,在灾害面前让我们站直,让我们坚持,坚持意味着机会,意味着新生。在此,让我们用自己的名字铭记,用真诚为灾区人民筑起精神的长城,向世人展示我们的坚毅!
———优酷网