This work offers of the book “HOW WE COMPETE: What Companies Around the World Are Doing to Make It in Today’s Global Economy” by Suzanne Berger.
The MIT Industrial Performance Center analyzed the real-world experiences of more than 500 international companies: Suzanne Berger looks at this data in How We Compete and proposes that the impact of globalization is not quite as one-dimensional as conventional wisdom suggests. Globalization generates significant dangers to corporations, but also opportunities; it is a far more complex issue than just cheap labor (which is not the answer to every business challenge). It is clear that external forces of globalization are less significant to a business than the way the business itself chooses to engage with them.
Berger explains the forces behind globalization, and how they are enabled. From this analysis, she has taken 4 general conclusions, and broken them down with case studies. She believes that the successful global company is either the best, or outsources to the best; uses legacy to grow and build; is not obsessed with low-wage strategies; makes definite choices, rather than drifting. Berger is careful not to suggest that she can supply a blueprint for success – every company has different global drivers – but it’s still crucial to understand globalization and apply that knowledge. Reading How We Compete is an excellent start in that process.