Competitive horizon
Article Type: Competitive horizon From: Strategic Direction, Volume 24, Issue 11
Australian industry faces carbon penalty
According to a report published by the Turkish Press (www.turkishpress.com),Australia is set to launch an innovative measure to combat global warming. Per head, the country is one of the world’s largest carbon polluters and its predominantly hot, dry climate leaves it more vulnerable than most to the effects of climate change. Global warming could damage the economy in Australia with food production, water supplies and agriculture particularly threatened. In addition, any impact on attractions like the Great Barrier Reef or the Kakadu wetlands is likely to seriously affect tourism. The report points out that the carbon emissions trading scheme will involve setting limits on the amount of carbon that industry is permitted to produce without incurring financial penalties. Companies will be issued with permits and must pay extra to increase their emission allowances. Australia’s government believes that this market-based incentive provides the best way of reducing the country’s carbon footprint. It intends to implement the scheme by 2010 although drought-affected agricultural industries will not be expected to comply until five years later.
Telecom set for growth in UAE
An increase in the population of the United Arab Emirates (UAE) is expected to trigger significant growth within the telecoms industry, a report published by Gulf News (www.gulfnews.com)claims. According to Al Mal Capital Research, the country’s population will grow at 4.8 percent and reach 6.3 million by 2012. During the same period,overall revenues in the UAE telecom industry is predicted to increase from Dh21.6 billion to Dh35.27 billion, a growth of 8.5 percent. This growth will also impact on the mobile phone market and by 2012 the number of subscribers could rise to 11.9 million. The figure was 7.7 million at the end of 2007. Tourism has also been linked to mobile penetration as visitors use local SIM cards during their stay in the region. The report does, however, warn that telecom markets in the Middle East may soon become saturated. Compound annual growth of 44 percent between 2003 and 2007 led to the number of subscribers rising from 24 million to 103 million. With competition also increasing significantly, significant future growth will become more difficult to sustain. As a result, analysts believe that more organizations will choose to fuel growth by expanding operations into neighboring countries.
UK companies take contract risks
With market conditions remaining difficult, many new small to medium UK enterprises are opting to draw up their own business and employment contracts instead of consulting legal bodies. However, legal firm ContractStore.com warns against this action and claims that failing to take legal advice for measures such as terms and contracts and sales agreements could mean omitting the clauses necessary to protect company interests in a range of different circumstances. Many of the start-ups that participated in the ContractStore survey cited payment default as one of their main fears. The report, as published by Crimson Business (www.crimsonbusiness.co.uk), claims that taking the necessary legal steps will offer greater protection against bad debtors while also helping to minimize the risk of claims being made against the company.
Consumer skepticism grows against green marketing
There is growing evidence to suggest that marketers should be wary about making green claims in their advertising. According to a report published by the International Herald Tribune (www.iht.com),the sheer volume of advertisements containing an environmental message means that many campaigns are failing to have the desired effect. Instead, consumers are growing increasingly apprehensive about the claims being made. The report points out that the unprecedented growth in green marketing has fuelled a substantial increase in the number of consumer complaints to advertising watchdogs within many different countries. As a result, bodies responsible for monitoring advertisements are putting forward proposals to ensure that marketers become more responsible when making environmental claims. In the USA, for instance, the Federal Trade Commission has begun moves to change its code of conduct relating to green advertising. Similar steps have been taken within Europe. Many of the complaints relate to exaggeration or vague claims that cannot be substantiated. The report advises marketers to be more specific in their messages and to detail the measures a company has taken to improve its environmental behavior. It is claimed that the best ads also include links to websites that provide further information. Concerns are increasing to the extent that environmental campaigns are being increasingly handled by specialist units from either large advertising agencies or green-oriented start-ups. The explosion of green advertising has created a further problem for companies in that differentiation is becoming harder to achieve.
