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The borderless world by kenichi ohmae:

Chapter 1:
1. Good strategies are a balance between customers, competitors and company.
Today as a genuinely interlinked economy emerges country and currency as
factors also become crucial for formulation of strategy.
2. Information has empowered customers which have forced companies to
concentrate on the objective of creating new value for customers and move
away from erection of barriers.
3. Todays products rely on diverse technologies and new technologies are
becoming available faster and faster. No one player is able to master
everything. Thus operating globally means operating with partners which
further spreads technology.
4. Management of fixed costs is crucial. Over the past decade there has been a
movement towards increase investments in assets and hence fixed costs as
need for control on productive assets rises. In a fixed cost environment the
focus switches to maximizing marginal contribution boosting sales. This
requires a larger market base and hence pressure towards globalization.
5. Currency exchange rates are more volatile than earlier. it affects costs of
investment and costs of production. Hence it needs to be a part of a strategy.
6. If companies are focusing to be globalised they need to look at currency and
hence need to look at that country markets.
7. To serve global markets, global corporations need to lose their nationality.
8. The role of the governments has changed. In truly global markets, the key
success factor has shifted from resources to the market place and companies
need to participate in them to prosper. That means that people are the only true
means of creating wealth. Governments role is to ensure stable access to best
and the cheapest goods and services from anywhere in the world.
9. Governments need to get over the myth of national security. Where there is a
market, there will be a producer and no boycott lasts long.
10. Modern day governments concern is jobs. In an interlinked economy, the rapid
rise of service economy is what generates jobs. The maximum value add is in
the market place and by opening all markets , there can be creation of job
Chapter 2:
1. Despite operating globally most companys strategies are dominated by home
country customers and organizational units.
2. The principle of equidistance is to think global first. Building a value system
that emphasizes seeing and thinking globally is essential in todays
competitive borderless world.
3. In todays world, consumers have become global. Information flow is most
persistent and dissolving away the boundaries. A common Language is also
developing, which is English..
4. A product strategy in a borderless world does not preclude localized
products .truly universal products are far and few. Consumer pull shaped by
images and information from around the world determine your product
choices. The preference is shaped by the effects of the companys complete
business system in that country.

5. The quality of that business system will depend to some extent on the
companys ability to leverage skills developed elsewhere or exploit synergies
with other parts of its operations. With fashion itemsinsiderisation
assembling a complete or near complete business in the country does not
matter but for consumer goods it matters. Therefore replicating your business
system is crucial for success in consumer goods. Companies that do not do so
mix up strategies.
6. For industrial goods, insiderisation means development of engineering, sales,
finance service etc and linking up with local functions that have these
functions in place is beneficial.
7. Globalization is driven more by needs and preferences of customers than by
diversification and competition. Managing effectively therefore means paying
central attention to delivering value to customers.
Chapter 3:
1. Making strategy requires first and foremost attention to customers needs. Link
it to analysis of your companys ability to respond to those needs. Follow this
with the business systems that that designs, builds and markets them.
Strategies are tested against competitive realities. Strategy should involve
determination to create value for customers and avoid competition wherever
possible. Most strategy should be hidden.
2. The past strategy of competitive differentiation has reached a point of no
returns. To get out of this there is urgent need to focus on customer needs. It
also means creating value for customers. The process of discovering value
creating opportunities is contagious. That is strategy. This means working hard
to understand a customers inherent needs and rethinking what a category of
product is all about.
3. Looking closely at a customers needs are basics of sound management. They
have been neglected because it is assumed that the solution is simply a
reversal of a diagnosis.(reflex action without going into the cause)
Chapter 4:
1. An inability to see the long term picture represents an unwillingness and an
inclination to treat all problems as others problems. It leads to a disastrous
company centered arithmetic which is ruining industries. This is the strategy
of doing better. This requires well rounded strengths.
2. Unfortunately very few companies have such well rounded strengths. If a
company wants to succeed, it needs to operate with a keen and flexible sense
of direction. Faulty strategy will always lead to short term focus on beating the
competition. This occurs because of stubbornness and because of companyism
which is to go on doing what you have been doing irrespective of its
consequences. It is human nature to resist change and keep doing what success
has been before.
3. One problem managers face is to know when to change course. Another
problem is to develop a more flexible approach to doing better (not one
dimensional). The critical issue in both cases is the mind set. This is their
willingness to look at their businesses and customers with fresh outlook. In
many cases rethinking the business can lead to something that produces a
better reward.

4. What you measure and how you measure is a powerful influence on what you
think and do. The absence of incentive systems tied to strategic performance
makes companyism worse. Measurement and incentive systems are important.
But looking only at short term performance is always the rule. It is time that
people looked performance over a period of years. Creating value for
customers is a long term process.