Global Tilt: How Western Businesses need to adjust to the new Eastern Power Shift

The Global Tilt or the Shifting of Power to the East

With the center of gravity in the world of business shifting to the East, it is high time for the western businesses to accept these new realities. Whether it is the war for talent that is happening between western multinationals and eastern businesses or the increasing economic power of India and China, the new realities dictate that the west as a whole needs to prepare for the inevitable powers shift to the east.

Indeed, another dimension of this global tilt is that western companies are competing against countries and not necessarily companies. This is because the rise of the state owned enterprises in China and India and the power that they have in the global market means that western businesses have to necessarily ensure that they get the backing of their respective governments as well.

War for Resources

The third aspect of this global tilt is that the war for resources is heating up in the world. Given the fact that the resources of the world are rapidly shrinking and that oil, minerals, and food are becoming scarce, Indian and Chinese companies are in a desperate race to take over African and Middle Eastern companies for access to the resources. In this context, the West has to catch up quickly or risk losing relevance in the “winner take all” resource grab. It is also important for the west to have reliable sources of access to resources as the lifestyle of the average westerner is built on consumption and the need to consume more for less. The point here is that the west had a good time for the last century or so and now the equations in the world are changing with the rise of China.

It is a completely new game altogether

The fourth aspect of the global tilt is that the old rules that governed global capitalism are becoming irrelevant as Chinese and Indian entrepreneurs work towards reshaping the world in their own way. In other words, the scenario at the moment is something where the old order is breaking down and giving rise to the new order. Hence, it is important to realize that the old ways of doing business are no longer valid and hence, the west has to ensure that it reinvents itself to keep pace with the changing realities.

Closing Thoughts

Finally, it must be said that not every western company is unprepared for this global tilt as there are many companies that have adjusted to the global tilt. For instance, both Apple and Unilever have realized the importance of the eastern power shift and have prepared themselves accordingly. Moreover, companies like Vedanta, Cairn, and Shell Oil have similarly recognized the warning sign and have attuned their strategies accordingly. In conclusion, the present times are both exciting and worrisome at the same time as the new realities kick in.


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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

Globalization