t h e n ew no rma l
| 2 01 2
15
key findings //
1:
market shiftS cont. . .
With the signing of international free
trade agreements, offshore organisations
are becoming increasingly focused
on New Zealand. Cheap imports are
descending from the United States,
Europe and Asia, and it is difficult for
New Zealand manufacturers to compete
with the economies of scale and cheap
labour that underpin low overseas prices.
Within New Zealand, competition is
fierce and it is difficult to “find creative
margin” and “break into new markets”.
This environment has made some
larger companies act in uneconomical
ways when tendering for contracts,
sometimes choosing to take on key
contracts at a loss just to maintain
activity. Smaller organisations despair
that they cannot compete.
Chief Executives concluded that “different
business models need consideration”.
One retailer noted that “the world
economic climate and changed market
conditions have changed our customer
base from a number of middle / high-end
retailers, worldwide, to international chains
who want a very different product range,
and significantly reduced prices. The niche
market we used to service well no longer
exists, at least in our traditional markets”.
New Zealand organisations are faced
with the necessity to change – and
change quickly.
Our market remains volatile and
past analytical modelling tools are
not accurate in this new paradigm,
making forecasting less reliable.
CEO
| Education & Training Business