"The year 2030: The long-standing division of the world in the three markets of Europe, America and Asia is dissolved. There is a fully integrated world market with globalized product segments."
This is the expected future scenario. Will this scenario become a reality in the next 10 to 20 years? If so, then multinational corporations, together with their customers, suppliers and partners, will have a long journey ahead. To achieve this goal, global competitiveness through local value is required. Technological change and globalization will therefore be the figurative companions, for they determine the direction and context in which businesses will operate on global markets.
Production at one location is outdated
The scenario applies to global operating enterprises, but at the Rompa Group we look specifically at the consumer electronics and automotive industry; industries in which we know our way around. Worldwide manufacturers and their suppliers are present in each region, each with their own products and added value. However, the current business model for suppliers, to produce in one location and supply their customers from that location, is outdated. Thus, the idea of delivering Western European technology and premium products to new markets (e.g. Latin America and Asia) is too costly. Multinationals want to produce in the major continents for the 'local' market as 'time to market' and lower transport costs are important reasons. This is mainly caused by strong economic growth in emerging growth markets since the early 90s.