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    The Business World in 2025

    Four Scenarios to Stress Test Your Strategy
    By Michael R. Wade
    25 pages
    May 2016
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    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:

    1. Shifting geographies: How will the global economy work in 2025?
    2. Blurring industry boundaries: How will companies organize across sectors in 2025?
    3. 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.

     

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    Copyright ©2016
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    Available Languages English
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    Reference IMD-7-2351
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Nippon Telegraph and Telephone
    Industry Services, Telecommunications;Information Technology
    Available Languages English
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    Building on NTT (A), the case starts with NTT’s CEO having narrowed down strategic growth options with the board to prepare NTT for the future. Past international investments in AT&T Wireless and KPN to tap into foreign markets had resulted in billion $ write offs and stopped international acquisitions. However, after reviewing the disruptive changes facing the ICT industry and considering the shareholders’ views, CEO Miura committed to internationalization. The B case details NTT’s growth strategy focused on internationalization, while considering the need for new capabilities and technologies. It provides more insights into NTT, its opportunities and the Japanese experience with M&As and ends with Miura’s determination to quickly grow through international expansion to prepare NTT for the future.
    Reference IMD-7-2352
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Nippon Telegraph and Telephone
    Industry Services, Telecommunications;Information Technology
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    NTT at a crossroads (A): Quest for growth

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    Strategy General Management Digital Disruption
    By Patrick Reinmoeller
    Case reference: IMD-7-2351, © 2024
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    Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons
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    Case reference: IMD-7-2618 ©2024
    Summary
    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
    Reference IMD-7-2618
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2619, © 2024
    Read more
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    Overcoming adversity through innovation – Daikin at 100 (C): China market lessons

    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domest...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620, © 2024
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    Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2619 ©2024
    Summary
    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
    Reference IMD-7-2619
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Global Business
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    Browse all topics
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    Case Study
    Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons

    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
    Case Study
    Overcoming adversity through innovation – Daikin at 100 (C): China market lessons

    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domest...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620, © 2024
    Read more
    Overcoming adversity through innovation – Daikin at 100 (C): China market lessons
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620 ©2024
    Summary
    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domestic brands like Gree and Midea. Despite the initial challenges of breaking through in a fragmented and competitive landscape, Daikin’s innovative inverter technology became a distinguishing feature of its product offerings. The watershed moment in Daikin’s trajectory occurred in 2008 when it formed a strategic partnership with Gree, China’s largest air conditioner manufacturer. This collaboration enabled Daikin to tap into Gree’s expansive distribution network and manufacturing expertise, significantly enhancing its own market reach. The partnership proved mutually beneficial; Gree capitalized on Daikin’s advanced inverter technology while Daikin secured a foothold in a market driven by increasing consumer demand for energy-efficient solutions. By 2012, inverter air conditioners claimed over 60% of the Chinese market share, a figure that surged to over 90% by 2024, illustrating the success of their joint efforts. Furthermore, Daikin’s commitment to sustainability was manifested in its pioneering use of HFC-32 refrigerant, known for its low global warming potential. By openly licensing HFC-32 patents globally, Daikin not only positioned itself as an environmental leader but also fostered industry-wide innovation. This case highlights the critical importance of strategic partnerships and innovation in overcoming competitive challenges and underscores Daikin’s role as a transformative force in the global air conditioning market.
    Reference IMD-7-2620
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Global Business
    Strategy
    Browse all topics
    Related content
    Case Study
    Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons

    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
    Busting the myth of flashy innovation
    By Joep de Caluwé
    in I by IMD
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    Busting the myth of flashy innovation
    By Joep de Caluwé
    in I by IMD 9 December 2024
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts. In this final article in a series of three articles, Joep De Caluwé (EMB...
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