Monthly Archives: September 2011

Where Do Mainland Chinese Banks Make Money

Mainland China’s bank lending typically spikes in the first quarter of each year.  These banks make much less money from fees than their international peers, so lending volume is the main determinant of their profit.  Interest on loans accounted for … Continue reading

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The Strong Yen

The Yen can benefit from a quirk in the markets.  Because it has such low rates, traders and investors typically take out loans in Japan and exchange the proceeds for higher-yielding bonds from nations such as Australia, New Zealand, and … Continue reading

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China’s Commodity Economic Indicators

3 commodities that are particularly tied to China’s growth: copper, above all; then soybeans; and oil.

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Arbitrage – The Strategy of Difference

Correctly choosing how much to adapt a business model is certainly important for extracting value from international operations.  But to forcus exclusively on the tension between global scale economies and local considerations is a mistake, for it blinds companies to … Continue reading

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6 Ways to Grow a Business into an Adjacent Space

Expand along the value chain.  This is one of hte most difficult adjacency moves – De Beers extended its diamond business from wholesaling into retailing. Grow new products and services – IBM moved into global services, which now constitutes for … Continue reading

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Find Value in Tweets

Learn about the competitive landscape – Tweets about product that include the names of rival brands can reveal a lot about market positioning. Look for unexpected themes – Persistent words point to persistent ideas. Dip deeper into the stream – … Continue reading

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Indonesia Stealing Market Share from China

The “Made in China” tag may be getting some new competition.  Make room for “Made in Indonesia”.  Global footwear and apparel brands, in the endless pursuit of lower costs, are shifting manufacturing to this nation of islands, drawn by a … Continue reading

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