14
t h e n ew no rma l
| 2 01 2
market
shifts
Over one-third of Private sector
Chief Executives rated market
shifts as one of their riskiest
issues. It was, in fact, the top
issue for that sector.
Throughout history, organisations have
been forced to move with the times
in order to survive. However, the 21st
Century’s pace of change is particularly
intense, with communication technologies
truly opening New Zealand’s doors to
an onslaught of global competitive and
social influences. For the Private sector,
this issue is number one, and over one-
third of Chief Executives considered it
one of their riskiest issues.
For many industries, technology poses
a significant substitution threat.
In the print-media industry, for example,
digitisation threatens advertising
revenue, with i-books and web-based
media making print products redundant;
in the medical alarm industry, GPS
technologies remove the need for physical
alarms; and in the accounting services
industry, cloud solutions are simplifying
accounting processes, reducing the
market for professional services. As one
Chief Executive noted, “We have full
exposure to a market that is in structural
decline because of the choices available
to customers through electronic media
and technological advancements”.
Social changes also affect a diverse range
of markets. These changes range from
a “greater awareness of environmental
issues” to “alternative ways of caring
for people in a community setting”, a
“
move to smaller cars”, “people doing
less around the home”, the “throwaway
environment” and greater awareness
about health.
Most notably, Chief Executives observed
that most customers now have a drive
for low cost and low value, price
being the primary consumer driver.
Organisations simply must be ready
to change their product and service
offerings in response, with one Chief
Executive commenting that “the biggest
risk is failing to renew our offerings”.
0% 5% 10% 15% 20% 25% 30% 35%
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
1)
Market shifts
[
Most highly ranked item ]
2)
Changes in
economic
climate
0%
10%
20%
30%
40%
50%
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[ 4
th most highly ranked item ]
[
Most highly ranked item ]
[
Most highly ranked item ]
8)
Cultural Barrier
9)
war for
talent
market sh i ftS
The niche market we used to
service well no longer exists, at
least in our traditional markets.
CEO
| Retail & Consumer
Products Business
key findings //
1:
market shiftS