Recently, I read about how each era has its companies that “dictate” trends, markets, and disruptive actions. Similarly, in the next seven years, seven companies are refocusing the market, investors, and competition. We will be on the lookout for how their actions will generate large-scale reactions in various regions, not just in countries. I am referring to companies like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, which set the pace in actions we should not lose sight of in our region, their talent, and productivity. To put us in context, let’s consider that one of the lean manufacturing benchmarks is Toyota. McKinsey defines these companies as having unique elements in their operations.
The vision of these companies is analyzed with a 3-year focus to understand how they will make us better and a 10-year focus to ensure our relevance. Associates play an important role, as many talented employees are about to leave, and their commitment is to their future. They developed the policies, but they will not be the ones who adapt them. This is where cultural transformation comes into play, as in the next 5 years we will see how cultures dilute in companies that have opted for remote work, where the commitment is different and so is the action of the staff.
Technology: Reality vs. Fiction
When we talk about technology, according to these seven giants, we must discern between reality and fiction. If technology cannot integrate into the business, generate income, and align with the associates’ way of thinking, it is just a control tool and not a growth tool. Sometimes we hear suppliers or customers say: “I can’t pay because I am implementing a system”; These are isolated implementations where technology does not align with the way of doing business. The organization of these companies has dynamism, efficiency, motivation, and openness to discussion, which generates the three previous elements. When the organization learns from its team and feedback, it positions itself to create organizations that can support scalable and flexible growth. Finally, routines close the circle of the seven giants, integrating ideas, capabilities, goals, and policies into the organization’s operation. Mistakes are documented and the previous six elements are fed back for adjustments and changes. If we analyze this in our Baja California context, let’s answer some questions:
- What are the Super Companies in the region?
- What do these companies represent for our universities?
- Why do we think these companies are Super Companies?
Of course, we have the answer to each one of them. Moreover, part of the beauty of being human is that we already know it. We must consider that, in the most recent commercial reconfiguration, Mexico was the main supplier to the United States, while Vietnam has increased its supply with China and the United States. Russia’s exports to Europe decreased, while China’s electric car exports to Europe increased significantly.
Current and Future Strengths
In conclusion, we must accept that reconfigurations will happen and ask ourselves why we are not being favored. The answers come from various angles:
- China will maintain 40% of global supply, as its exports to Europe, Japan, South Korea, and the United States may reduce among them, but they keep the market among them.
- China, in reaction to the imposition of tariffs by the United States or the T-MEC region, can consume any lack of purchases from other countries, focusing their products on internal consumption.
- China, in 2022, began a reconfiguration of its exports, reducing to Japan and the United States and increasing to Brazil, India, and the combination of the BRICS plus Saudi Arabia.
The geometry of international trade favors Mexico with what it already has. What is outside is not so big, it is complicated, and requires a lot of infrastructure that we do not have. Let’s focus on our current strengths and develop better metrics based on the cultures we already have in logistics, distribution, industry, and talent.
Luis Manuel Hernandez, PhD, Coordinator of the Nearshoring and USMCA Compliance Dialogue Table
LI. https://www.linkedin.com/in/lmhg/
X. @LuisMHernandezG
