Intl. Symposium on Vascular
Diagnosis and Intervention
Miami Florida
January 21-25th, 1995

American College of
Cardiology Annual Meeting
New Orleans, Louisiana
March 19-23rd, 1995

Advanced Peripheral
Vascular Interventions
Milwaukee, Wisconsin
May 16-19, 1995

BASE YOUR COMPANY'S FUTURE PLANS ON CONDITIONS IN THE EMERGING ECONOMIES, NOT ONLY THE U.S.A.!

Over the next 25 years, the world will see the biggest shift in economic strength for more than a century. To day the so called industrial economies dominate the globe, as they have for the past 150 years or so. Yet within a generation several are likely to be dwarfed by the newly emerging economic giants.

China will soon overtake the U.S.A. as the world's biggest economy. Developing countries are likely to account for around TWO-THIRDS of the increase in world imports over the next 25 years. Faster growth in the emerging economies is already providing a powerful stimulus to growth in the rich world. In the three years to 1993 America's exports to developing countries grew at an annual average of 12%, while those to other rich countries rose by only 2% a year.

Some 42% of America's exports, 20% of Western Europe's (47% if intra-European union trade is excluded) and 48% of Japan's now go to the third world or to countries of the former Soviet block. Western Europe exports twice as much to developing countries as it does to North America and Japan together; and America exports more to developing countries than Western Europe and Japan.

And since Asia and Latin America are the world's fastest growing markets, these export shares are likely to increase. (Source: The Economist, London, October 1-7th 1994 issue page 79 suppl.)

The bigger the world economy the more powerful its smallest players. Big companies and "economies of scale" succeeded in the comparatively slow-moving world of the four decades to the mid - 1980's. But now, only small and medium sized companies or big companies that have restyled themselves as networks of entrepreneurs will survive to be viable when we turn the corner of the next century.

Already 50% of U.S. exports are created by companies with 19 or fewer employees: the same is true of Germany Only 7 percent of U.S. exports are created by companies with 500 or more employees.

Companies have to dismantle bureaucracies to survive. Forming an alliance rather than merging or making an acquisition means you gain added muscle without getting any bigger. Strategic alliances are being created daily as part of the process of moving to a single market world.

"Economies of Scale are giving way to economies of scope, finding the right size for synergy market flexibility and above all, speed."

Paul Allaire, the Chairman of Xerox - "We are trying to get the small company benefits of quickness in time to market, decision making and the elimination of bureaucratic activities."

Source:
John Naisbitt, Global Parodox - Tim
Bigger the World Economy the More
Powerful its Smallest Players, M. Morrow
New York, 1994

Written by Howard J. Leonhardt

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