Are we ready for a world where less is the new normal? In an era where a 20-30% drop in demand across various sectors isn’t just a possibility but a reality, businesses face a crossroads. Once again. This isn’t just about numbers; it’s about a seismic shift in how we strategise and operate. These are a limited number of forces redefining our strategic approach. Yet, amidst these, a pressing concern stands out: the decreasing demand across various sectors and its cascading effects on the market.
Eight trends at the forefront:
1. AI
2. Decarbonisation and energy
3. Post-globalisation
4. Capital rationalisation
5. Rehumanising work
6. Market dynamics
7. Digital and physical integration
8. Community amidst fragmentation
In light of these trends, there are three imperatives to embrace:
#1 A clearer future view Demand dips by 20-30% in key sectors, urging businesses to adapt swiftly. Enhanced ‘future sensing’ becomes essential, allowing companies to anticipate and navigate through these changing tides. Adjusting business models and operational efficiencies becomes crucial to manage the consequent price drops.
#2 Increased government role Today’s scenario, especially in Europe, is marked by cautious markets, climate change paralysis, increasing conflicts, and significant supply chain disruptions, leading to rising costs. Understanding and aligning with government policies and economic measures becomes more than a necessity; it’s a strategic anchor in these turbulent times.
#3 Capital and talent dynamics The current margin squeeze is evident in widespread lay-offs across Europe. This economic tightening, coupled with inflation, puts immense pressure on financial and human capital. Strategic planning and consultancy investments, often sidelined, become critical for navigating these complex challenges effectively. As prices respond to less demand, the call for agility and foresight grows.