Magazine article Business Asia

Upbeat Outlook as Companies Pursue Growth

Magazine article Business Asia

Upbeat Outlook as Companies Pursue Growth

Article excerpt

Renewed enthusiasm is sweeping through leading Asian and multinational companies, with a new study suggesting that most companies are now seeking growth opportunities in Asia.

However, companies should move quickly to take advantage of changing market conditions or risk being left behind.

An Andersen Consulting study, titled "Shifts in the Shoreline: Asia's New Business Environment," found that three-quarters of chief executives and senior executives listed entering new markets as part of their business strategy.

The report also stated that two-thirds of Asian companies and three-quarters of multi-nationals now viewed the region as an opportunity rather than a crisis. This is a vast change from 12 months ago, when only half of the Asian companies consulted held this view.

Strategies now being pursued by companies include expansion into new markets, increasing production capacity, and investing in information technology and re-engineering processes.

The same study last year found companies were pursuing mainly defensive strategies, such as cost cutting, postponing investment, rationalising and restructuring.

Mr Alan Salter, of Andersen Consulting, said the Asian crisis had radically changed the region's market dynamics.

"Asia will not return to pre-crisis conditions where companies could succeed based on the region's strong natural growth rates alone," he said.

"(But) rewards are there for those companies who understand the radically altered market conditions left in the wake of the crisis and act quickly to capitalise on them. …

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