HomeResearch & Knowledgeback to HomeDigitalback to Research & KnowledgeThe Business World in 2025back to Digital

Report

The Business World in 2025

Four Scenarios to Stress Test Your Strategy

By Michael R. Wade

25 pages

May 2016

Download full report

PRINTABLE PDF – 2MB

Highlighted Content

In order to challenge thinking and help decision-makers test their strategy and underlying assumptions we have identified the three factors which will lead to the greatest uncertainty and change:

Shifting geographies: How will the global economy work in 2025?
Blurring industry boundaries: How will companies organize across sectors in 2025?
Evolving digital behavior: How will the consumer react to Internet ubiquity in 2025?

The interplay of these factors leads to numerous different possible futures. We have selected four combinations which provide thought-provoking and challenging business conditions

Video

Global Bazaar

What happens in an open geopolitical environment where new revenue streams are unlocked by technology? Global Bazaar is a scenario of business transformation and continuous change. However, corporate volatility remains high, which means guaranteeing stable business results is challenging with fluid markets and hyper-competition.

Scenario: Cautious Capitalism

Concerned consumers reclaim their data and turn to privacy-friendly companies. This triggers new competitive dynamics, challenging digital players and reining in opportunities for cross-industry platforms. Cautious Capitalism describes a global and open business landscape challenged by a shift in consumers’ digital behavior.

Scenario: Territorial Dominance

Imagine an international environment, where countries step back towards protectionism. Local industry regulation tightens, big regional companies dominate and entrepreneurship is scattered and marginal. Territorial Dominance describes stagnant economic growth and companies focusing on efficiency gains.

Scenario: Territorial Dominance

In Regional Marketplace the world divides into localized clusters, each following its own rules in trade, business policy, and Internet governance. Governments still drive local innovative environments, fostering native disruptive ventures, but protect regional players from international competition.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This report is part of a series

Four scenarios to stress test your strategy
The business world in 2025: Four scenarios to stress test your strategy

This report is part of a series

Four scenarios to stress test your strategy
The business world in 2025: Four scenarios to stress test your strategy

Four scenarios to stress test your strategy

By Michael R. Wade

Summary

Change has been relentless since the turn of the millennium, and the pace of change is only expected to accelerate as we move into the next decade....

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Digital

Leadership

Power Dynamics

Strategy

Browse all topics

Keep reading

Report

IMD World Digital Competitiveness Ranking 2024: The digital divide: risks and opportunities

Now in its eighth year, the 2024 IMD World Digital Competitiveness Ranking measures the capacity and readiness of 67 economies to adopt and explore digital technologies as a key driver for economic transformation in business, government, and wider...

Digital Technology Management Competitiveness

By Arturo Bris, José Caballero, Christos Cabolis, Francesca De Nicola and William Milner

IMD World Competitiveness Center Report, 14 November 2024, 8th edition

Case Study

Mastercard 2023: Rewired for infinite optionality

Disruption Digital Strategy

By Howard H. Yu, Mark J. Greeven and Martin Králik

Article

Management myth-busters: Does culture really eat strategy for breakfast?

Culture eats strategy for breakfast is one of the most enduring truisms of management. But is it really the case? And what is culture anyway?

Organizational Culture Strategy

By Michael R. Wade

in I by IMD

8 November 2024

Article

Phishing attacks are evolving. Here’s how to resist them

Improvements in technology have made deepfakes — fraudulent audio, video, and images — easier than ever to create. As a result, 2024 has seen a nearly 60% surge in phishing attacks. These attacks hijack our perceptions and our ability to distingui...

Digital Cybersecurity Technology Management

By Öykü Işık and Ankita Goswami

in HBR.org

29 October 2024

Article

Strategy stack: An integrated approach to decision-making

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Change Management Competitiveness Decision Making Innovation Strategy

By Albrecht Enders, Ajay K. Kohli, Andreas König and Arnaud Chevallier

in I by IMD

Case Study

Bossard’s AI strategy for proven productivity (Cartoon case)

Bossard, a Swiss company founded in 1731, has successfully transitioned from a product-centric approach to one that offers services and solutions. It has achieved significant revenue growth despite economic challenges. Its brand promise, “proven p...

Artificial Intelligence Business Transformation Strategy

By Stefan Michel

Case Study

The AI paradox: Will generative AI enhance or destroy the business model of 99designs.com? (Cartoon case)

99designs.com is a global platform connecting freelance designers with potential clients. The case study examines the potential impact of generative AI on 99designs’ business model. The platform uses a crowdsourcing approach that invites designers...

Strategy Business to Business Digital Disruption

By Stefan Michel

Article

Putting the ‘G’ in ESG (and the ‘A’ in alpha)

Test your knowledge on ESG governance with our fun quiz! Learn how strong governance drives environmental and social success in investing. Take it now!

Corporate Governance Strategy

in I by IMD

Article

How CEO’s drive saved car giant Ford from the scrapyard

Companies desperately in need of a turnaround in fortunes should take inspiration from the 2008 rescue mission by the then-new Ford boss Alan Mulally.

Agility Business Transformation Change Management Competitiveness Decision Making Future Readiness Leadership Organizational Culture Performance Management Strategy

By Howard H. Yu

in I by IMD

Report

Nature's ROI: Five key enablers for building a nature-positive business strategy

As the global environmental crisis reaches unprecedented levels, businesses face mounting pressure to act. But this challenge is also a major business opportunity. The companies that move quickly to tackle biodiversity loss will not only protect o...

Sustainability Strategy

By Julia Katharina Binder, Adrian Dellecker and Aurélie V. Stamm

IMD Center for Sustainable and Inclusive Business Report, October 2024

IMD World Digital Competitiveness Ranking 2024: The digital divide: risks and opportunities

By Arturo Bris José Caballero Christos Cabolis Francesca De Nicola and William Milner
IMD World Competitiveness Center Report, 14 November 2024, 8th edition

Summary

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Digital

Technology Management

Competitiveness

Browse all topics

Mastercard 2023: Rewired for infinite optionality

By Howard H. Yu Mark J. Greeven and Martin Králik
Case reference: IMD-7-2455 ©2024

Summary

In the 2010s, card processing – Mastercard’s flagship service – started showing signs of commodification as new, nimble players (typically, fintech startups thriving on digital) entered the payment processing space, and customer preferences evolved beyond plastic cards and traditional contact payments. To re-energize its central position and its ability to capture value, Mastercard – as the incumbent – had to make bold decisions. The case details Mastercard’s approach to conceptualizing and building a global platform ecosystem that upholds the principles and design elements of modularity (i.e. interoperability and scalability) and optionality. Today, Mastercard's services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. All along, the company has accommodated a high level of internal disruption. The case also explores the nature of Mastercard’s systematic collaboration with fintechs – players that often started out as competitors in specific parts of Mastercard’s value chain. It describes the company’s engagement with fintechs as fostering collaboration and co-creation and facilitating access; in other words, opening doors and sharing tools with partners. The case presents observations and quotes by CEO Michael Miebach, whose career trajectory at Mastercard – spanning Africa & Middle East experience, fintech partnerships, product management and the CEO role – sheds additional light on the philosophy and values that have driven the company’s transformation to a technology powerhouse and self-described original fintech.

Reference IMD-7-2455

Organization Mastercard

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Disruption

Digital

Strategy

Browse all topics