Global Competition & Business Empires
Dr. Maja Zelihich first discussed global competition in the current marketplace, focusing on the rise of global business and US company Amazon competing with Chinese tech giant Alibaba. Now, she turns her focus to what we might expect to happen in the future for these business behemoths.
Is Chinese Momentum Going to Continue?
Lingling Wei and Chao Deng (2017) raise some concerns about President Xi’s firm decision to “clamp down” on China’s top four largest companies due to their tendency to borrow "too much" to buy Western enterprises that are not appropriately priced (Wei & Deng, 2017, para. 3). Some of the companies whose “creative borrowing” may cease or be significantly reduced because of this initiative are Wanda, HNA Group, Anyang, and Fosun International, the country’s top overseas deal makers (Wei & Deng, 2017). This move is an example of the Chinese government doing what it does best (or worst, depending who you ask).
Empires Come and Go
What I found fascinating writing this series is that the top 10 Chinese companies per the Global 500 ranking are not included in the discussion at all. The reason is because the companies already competing and at times out-competing US businesses are quite well known for their approach and strategies. Their "secret game" is not that secret anymore. It is the newcomers that are not going to compete with the Western businesses; they may end up out-competing some right out of the gate. These companies are done observing and are now ready not only to play ball in the big leagues, but they are also aiming to win at each round.
As the global business landscape changes at a drastic speed, Amazon must ensure its vision is not too skewed due to its recent growth and successes. Its innovators will have to operate two steps ahead of China’s tech giants. Empires come and go, and there is no such a thing as consumer loyalty to any business empire in today's unpredictable markets. The company that sails best in unchartered waters will win the ultimate global business game.