Globalization and Industry Transformation

Michael Moe, a noted global technology analyst, writes of the effect of globalization on industries (note global vs. local in looking at business models). His point:

While many new leaders still originate in the United States, increasingly emerging stars such as Baidu, Alibaba, MercadoLibre, Ctrip, Research in Motion, and Vestas are conceived outside the U.S. Moreover, even new leaders such as Google and First

Solar are generating approximately 50% of their revenues outside of the United States

and 50% of the S&P 500 earnings come from abroad.

On specific industries that benefit from globalization:

Despite the airline business having been a notoriously horrible industry with the

cumulative loss by all US airlines being approximately $25 billion since Orville and

Wilbur Wright took wings, globalization and the demographic of aging populations

retiring and having more time to travel makes it impossible not to be bullish on the

travel industry.

As English is the global business language, another pure play on globalization is

English Language training. China, always looking ahead, has made English classes

mandatory starting in the 2nd grade. Berlitz is an idea with that theme. Pearson and

Thomson are two terrific global media companies that have sizable English Language

businesses. Rosetta Stone, which is a recent IPO but has stumbled lately, is another

terrific play for this theme. Livemocha, which is a private company in the social

language learning space, has tremendous potential in my view.

Identification technology such as biometrics is an obvious benefactor of a global world.While for now a driver’s license is generally sufficient identification in the United States,

and a passport is acceptable abroad, in a global world where people are traveling in

multiple countries frequently and commerce is conducted without geographic

boundaries, physical and virtual security will be enhanced by more infallible

identification.

Of course, driving so much of this globalization has been the internet of late.

Industry that Benefit from Globalization

Medicine

Airlines

Language Training

Identification Technology

Security Companies

Education

Financial Services

Consumer Brands

Entertainment

Green Technology/Water

Internet/Media

Social Learning/Social Media

A.T Kearney Global Services Location Index 2009

Rank Country

1 India

2 China

3 Malaysia

4 Thailand

5 Indonesia(6)

6 Egypt

7 Philippines

8 Chile

9 Jordan

10 Vietnam

11 Mexico

12 Brazil

13 Bulgaria

14 United States

15 Ghana

16 Sri Lanka

17 Tunisia

18 Estonia

19 Romania

20 Pakistan

Source: AT Kearney

For the full reading of the report:

http://www.nextupresearch.com/Site/NEXT_up!_files/NeXt%20Up!%2009.20.09.pdf