Most chief executive officers of major multinational corporations will stop making cost reduction their primary focus over the next three years, according to a global survey released yesterday by IBM Taiwan Corp.
The survey, conducted by the Big Blue's business consulting services, showed that 83 percent of 456 chief executive officers (CEOs) interviewed would shift their business goal to revenue growth.
Many CEOs feel that cost-containment measures they have put in place over the last two years are now sufficient and, combined with a more positive view of economic trends, are focusing more aggressively on growth and investment opportunities, an IBM official said yesterday at a presentation, citing the survey.
"Asia, in particular China, was cited as the key emerging market for revenue growth," said Jeanette Kuo (
Among the 456 CEOs polled, six were from Taiwan, and they said a continual build-up of competitiveness is a top priority for their businesses' survival.
These Taiwanese CEOs also shared the same view that markets, internationalization and upgraded technology are three of the biggest challenges to enhance business.
"[Local] banks, which catch up with the market trend and are capable of branching out of Taiwan, can lead the sector," said Jason Chen (
According to the survey, Taiwanese CEOs complained that the political and regulatory barriers that keep them from branching into Chinese markets have greatly slowed down their revenue-driven expansion plans.
Commenting on the poll, People First Party Legislator Norman Yin (殷乃平), who also attended yesterday's event, said that the local banking sector is still going through a phase of internal integration, while world players have prepared to snap up market shares during the upcoming economic recovery.
Despite their first-mover advantage, most local banks failed to come up with strategies to differentiate their financial products to maintain competitiveness and develop customer-relations management to retain customers, Yin said.
Despite facing such dilemmas, local banks are neither allowed to branch into Chinese markets nor capable of expanding into global markets by leaving their Taiwanese clientele behind.
The local banking sector is also too focused on developing retail businesses in a over-crowded market while lacking the talent to develop other businesses including corporate and investment banking businesses, Yin said.
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