"The companies that have managed to grow today are those that are most prepared to change". Friedman starts off with this observation of the chapter meaning how do these companies respond to the triple convergence. It's about coming up with a strategy to survive in this new world. I like the part where he talks about Howard Schultz, founder and CEO of Starbucks, and how they have 19,000 variations of coffee. Their strategy was to make the customers the designers and customize the product the way they want it. As we talked in one of our discussion boards, these new people are Prosumers. Friedman also has seven rules on how to survive. Ill briefly touch on a few of them.
Rule #1 - When the world goes flat-and you are feeling flattened-reach for a shovel and dig inside yourself.
During this Triple Convergence stage, companies need to find a way to stay competitive and survive in this new global market. He uses his friends company Greer & Associates as an example. This rule is common sense to me, and I will sum it up in one of my favorite quotes. "If you stand still, you will get left behind"
Rule#2 - "And the small shall act big"
This is the classic story of David verse Goliath. Small companies need to not act their size and take advantage of the new technology for collaboration. Use the resources that the bigger companies offer, like in the previous chapters, how Toshiba used UPS for quick delivery and even repairs.
Rule #3 - And the big shall act small
This is one of my favorites, because it's saying the big companies should no longer treat you as a piece of meat, but as an individual personalized customer. They use the example of Starbucks as I talked about in the intro of this chapter. Starbucks made their service into a buffet for the customers, and let them have their way.
Rule #6 - The best companies outsource to win, not to shrink
Saying the successful companies don't outsource to save on cost, rather they want to be innovative, increasing market share, and having a diversified staff. This subject is rather controversial, and Friedman has gone back and forth about the matter. He is really just confusing me with his opinion. There is so many pages I think he forgets what he writes.
Rule #1 - When the world goes flat-and you are feeling flattened-reach for a shovel and dig inside yourself.
During this Triple Convergence stage, companies need to find a way to stay competitive and survive in this new global market. He uses his friends company Greer & Associates as an example. This rule is common sense to me, and I will sum it up in one of my favorite quotes. "If you stand still, you will get left behind"
Rule#2 - "And the small shall act big"
This is the classic story of David verse Goliath. Small companies need to not act their size and take advantage of the new technology for collaboration. Use the resources that the bigger companies offer, like in the previous chapters, how Toshiba used UPS for quick delivery and even repairs.
Rule #3 - And the big shall act small
This is one of my favorites, because it's saying the big companies should no longer treat you as a piece of meat, but as an individual personalized customer. They use the example of Starbucks as I talked about in the intro of this chapter. Starbucks made their service into a buffet for the customers, and let them have their way.
Rule #6 - The best companies outsource to win, not to shrink
Saying the successful companies don't outsource to save on cost, rather they want to be innovative, increasing market share, and having a diversified staff. This subject is rather controversial, and Friedman has gone back and forth about the matter. He is really just confusing me with his opinion. There is so many pages I think he forgets what he writes.
3 comments:
Friedman has many great ideas. My problem is he makes everything sound so simple.He goes through these rules like they are pure common sense and simple solutions Though the flat world platform exists not everyone knows about it or how to use it to their advantage. I also do not necessarily belive that we are at the point where you globalize or die! I guess he just needed to appear strong on his views!
I enjoyed reading about Starbucks as well. Erica is right though ... Friedman makes it all sound so simple, yet is really isn't! Although the Starbucks guy did the right things, he was also extremely lucky. The neatest thing about the "flat" world to me is that it gives small companies a huge advantage. They are able to do business with anyone now, where before they could only reach the local residents.
I agree with both erica and tyler that everything seems so simple. Not only does success have alot to do with pure luck, you have to be in the right place at the right time with the right connections to make things happen. Also, if everyone knows these rules and follows them, then aren't we all back to the same old level of being competitive? Maybe these rules should be limited in access if people want to gain an advantage over others instead of broadcasting these to the whole world..
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