2. Industry: How to cope with new competitive environment

• Global Competition

• What to do: Adaptability and continuous updating of

• business model

• • • Cut costs: continuous process of increasing efficiency
    • Diversify globally:
    • • Natural hedging: relocation to low-cost countries
      • Moving up the value chain: concentrate on design, customisation, services (more knowledge intensive operations)
    • Financial hedging: employ new financial instruments
    • Rearrange the sourcing of products/ services
    • Develop clusters: intra-industry cooperation
    • Innovation: invest in R&D, technology, ICT and human capital