How high performers are accelerating ahead

Adjusting to the new reality: we may not have seen the worst

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Adjusting to the new reality: we may not have seen the worst.

As businesses become accustomed to global economic stagnation and the fact that things might not improve for several years, EY has identified four key characteristics of the new economy:

  • Companies today are competing in a multi-speed world, where there is extreme market variation between geographies and sectors.
  • Low spending and high prices are leading to severe cost pressure on businesses.
  • Today’s interconnected market is very volatile.
  • Businesses face great uncertainty from threats such as a Eurozone breakup or conflict in the Middle East.

Five years of stagnation has left many companies in poor economic health. However, our research also shows that, across all sectors, there is a growing gulf between companies feeling defensive about their current positions and those feeling confident enough to pursue new opportunities.

In preparation for the future, every business is taking a different approach to dealing with today’s low-growth conditions. For Growing Beyond, we asked companies what factors would be critical for their competitiveness in the next three years.

Despite some inevitable variation, on the whole, responses suggested that optimal performance requires a balance across all dimensions.


Critical factors for competitiveness - all respondents

EY - Critical factors for competitiveness - all respondents

 

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Critical factors for competitiveness - all respondents


EY - Critical factors for competitiveness - all respondents

Source: EIU panel survey, August-September 2012. All charts show percentage of respondents.

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