Characteristics
According to all these authors, globality is what comes next after globalization: a new state of worldwide hyper-competition. Sirkin et al. (2008) further detail globality’s three main features as they apply to commerce and business:
- A significant structural shift in the flow of commerce: companies from every part of the world are now competing with each other for “everything” – customers, suppliers, partners, capital, intellectual property, raw materials, distribution systems, manufacturing capabilities, and most important, talent. In this competitive free-for-all, products and services flow from many locations to many destinations.
- A breakdown in the established hierarchy of commercial power and influence: power is shifting away from traditional centers of influence in developed markets in the United States, Europe, and Japan, as companies from rapidly developing economies (RDEs) are quickly assuming leadership positions in global markets, forcing established leaders to compete on new terms.
- The emergence of new business and governance practices better suited to a truly global and decentralized business environment. To compete successfully in a world of globality, established industry leaders from developed markets are being forced to learn from competitors in developing markets. The practices include shifting autonomy and decision making outward to satellite operations; redeploying assets to build commerce within emerging regions; and expanding quickly into new markets to match the speed and scale with which challengers are rising.
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