15th Annual Global CEO Survey
Innovating on multiple fronts
CEOs in communications and media & entertainment, two industries facing swiftly changing dynamics, are the most active on all fronts, whether refocusing innovation efforts for existing products and services, or for entirely new products in new models. CEOs in insurance and asset management are among those more likely to emphasise innovation in new business models – often taking advantage of new technologies.
More companies are avoiding a simple export model. This is the case in every major geographic market identified by CEOs. Substantial proportions, between 20% and 36%, say they are designing new product innovations specifically for local markets. The balance is surely changing as companies increasingly operate in dissimilar markets and learn to segment better.
Key Findings
Embracing volatility
Mounting uncertainties are pressuring CEOs’ confidence. But businesses are not entirely on the defensive. Trends that support long-term investments in key markets remain firmly in place. Half of CEOs based in developed markets believe that emerging economies are more important to their company’s future, as do 68% of CEOs who are themselves based in emerging markets. |
Local approaches to global growth
CEOs are committed to expanding local customer bases in their priority markets. But rather than simply exporting products, they're building diverse local operations, from services capabilities to manufacturing capacity. Critically, they're changing their product mix – and sometimes their entire operating models – to meet very local needs and conditions. |
Risk resilience
Shored up balance sheets and more flexible supply chains have helped. But there's still plenty for CEOs to worry about. For example, most CEOs in Western Europe are concerned about instability in capital markets. Currency volatility is a potential constraint in Asia Pacific, while rising taxes and over-regulation loom large for CEOs in Latin America. |
Facing the talent challenge
Skills shortages are having a real impact on growth. One in four CEOs said they’ve had to cancel or delay a strategic initiative because of talent constraints. Rising compensation is one factor, but for more CEOs, there is simply a deficit of qualified candidates at a time when more CEOs expect to expand their workforces than to reduce. |
Contacts
Sophie Lambin
Director, Global Thought Leadership PricewaterhouseCoopers International Tel: +44 (20) 7213 3160 |