Last year, New York University (NYU) announced an agreement with the Emirate of Abu Dhabi to build NYU Abu Dhabi. The research university, with a complete integration of a liberal arts and science college, will be the “first world-class, liberal arts university in the Middle East”.
 
NYU Abu Dhabi is still underway, with the first formal academic year planned to start on the fall of 2010. NYUAD, which offer NYU B.A. and B.S. degrees, as well as specialized graduate programs, is projected to enroll at least 2,000 undergraduate students and approximately 800 graduate students. The students will be admitted from all over the world, especially the broad Middle East and South Asia.

The campus will be located on Saadiyat Island, 500 meters off the coast of Abu Dhabi. This island is still not developed, but is being planned for a population of 150,000 people.

The convergence of NYU and Abu Dhabi, the capital of both the emirate of Abu Dhabi and the United Arab Emirates, highlights every university’s race to take the lead on globalization. An increasing number of American research universities have been expanding internationally, many of which have created programs in the Middle East.
For instance, Weill Cornell Medical College, set up the first overseas American medical school in Qatar, and Yale University has been discussing the creation of an arts institute in Abu Dhabi.

Thomas L. Friedman was right in saying the world is flat; globalization has truly hit a new peak and is only intensifying, whether in education or in business.

Sources: www.nyuad.nyu.edu, the New York Times

        

In the June edition of Gulf Business, Mr. Welf Ebeling, EVP and COO of the “Leading Hotels of the World” indicated that while the number of 5 star hotels in Dubai is exploding, the next wave to follow is budget hotels.  

At the same time, EMAAR group has founded an affordable housing unit for lower-income individuals through its expected purchase of a “social housing” company.  The group plans to operate throughout the Middle East and South East Asia.  

These developments seem to illustrate an emerging trend, while certainly not at critical mass level, moving toward budget properties and tourism.  As it currently stands, the number of 5 star hotels in Dubai is large, unlike that of budget hotels.  Budget hotels and housing is likely to cater to the huge demand for tourists and workers who wish to be part of the Dubai experience...but at a reasonable cost.

        

At the end of the first quarter of 20008, Islamic banks comprised 13.4% of UAE’s banking assets, according to Kuwait’s Global Investment bank.  The sector is on the move with strong growth, rising share of the total banking market, new products and strong deposits. According to this report, the sector is introducing innovative products to account for new market needs.  Among these products are Ijarah and Murabaha.

Many banks in the Middle East already have an Islamic banking unit or even converting existing non-Islamic subsidiaries into Islamic ones.  The report goes on to mention that compound annual growth rate of deposits at Islamic banks has risen 44% over the past 5 years.  

A previous report by SIS International indicates that Islamic Banking has attracted a key market of banking clients, high net-worth individuals (HNWI’s), particularly in the Gulf.  While Bahrain is traditionally known as a hub for Islamic banking, banks in the UAE and Qatar are making in-roads into the market by creating Islamic Financial Services subsidiaries.

Recently, a Singaporean Islamic Bank is expanding in the Gulf.  Non-gulf Islamic Banks like DBS based out of Singapore have their eye on expansion in the Middle East.  The Islamic Bank of Asia, a subsidiary of DBS, expanded in Bahrain in the past year.  The bank is further considering expansion into UAE, Saudi Arabia, Kuwait and Qatar.

Source “Gulf Business” June 2008.

        

By Michael Stanat, Author of China’s Generation Y

Having lived and worked throughout Asia over the past few years, I am continually reminded that the Generation Gap that I wrote about in China’s Generation Y applies to many Asian cultures—-China and beyond.

In my book China’s Generation Y, I spent one chapter describing the significant generation gap between Gen Y’s parents, who grew up under the cultural revolution, and today’s youth who are in a peaceful consumerist country that has only seen growth.  My research showed that young people would not speak to their parents about many things and would avoid talking about even their interests like computer games to avoid criticism from their protective parents.

In India, I met with the parents of young people.  They described how it wasn’t the transitions to a new marketplace or the new technologies that bother them.  It was that young people were abandoning their culture or Western ideals.  That is not to say they were particularly angry or condescending about Western culture.  Rather, it was the abandonment of the Indian collectivist ideals to more individualist ideals which concerned them.

In the Gulf states of the Middle East, I had the opportunity to be involved with research projects with young local Arabs.  Indeed the collectivist culture is just as strong as in China and India.  To my surprise, the same generation gap applies.  Young people have remarkably distinguishable rules and perceptions on what they can and cannot say to their parents.  Now, young women who would wear burqu’as in public are even likely to play playstation at home.  While Arab youth are far less likely to follow the same trajectory as Chinese youth (e.g. consumerist, increasingly Western), they still watch Western media and partake in activities with their friends that put them at odds with elders.  

These experiences and the corresponding market research on young people lead me to believe that the Generation Gap is a more global phenomenon, heavily impacting Asia due to the impact of traditional culture with a new global culture.  The result is that young people are bridging the gap and thus creating a palpable generation gap, which far exceeds those in developed countries.

        

My quest to buy the iPhone for my corporate and personal use has illustrated serious pitfalls with Apple's customer service and distribution methods surrounding its ever-popular iPhone 3G. I had waited until today to buy it, as I had been on assignment in Dubai, United Arab Emirates doing research on projects, including mobile telecom companies.  In Dubai, Apple has no contract with telecom companies for the iPhone and only sells through second-hand vendors despite enormous demand.

Stuck in iPhone Limbo
It began today with a simple plan to arrive at one of the largest Apple Stores in New York City (which I humorously call the iStore) on 59th Street and 5th Avenue at 7:45 AM.   I had cash in hand and I had purchased from there several times before.  I would ask a few questions and then, hopefully, be out within 15 minutes. This, I thought, would allow me to easily and quickly buy the iPhone prior to work.  Then I planned to turn over my new iPhone and my existing corporate Blackberry to our IT professionals who would begin loading enterprise software.

Arriving at the store, I approached the first iSalesman to inquire about purchasing an iPhone.  This, indeed, was the way that I had purchased my personal MacBook and 2 iPods.  However, the salesman who is standing doing nothing turns to me and tersely says, "We're all out," without providing any explanation.  I asked him if other Manhattan Apple Stores had it in stock and whether I could buy it online.  He answered, "I don't know" and "no, they have to be activated in the store” before rudely turning away to other people who had questions.

Disbelieving him, I walked over to another salesman in the iPhone section and asked him if I could buy the 3g iPhone.  Contradicting the first salesman he said, “We have the 16 gig, but not the 8 gigs.”  

I responded, “Great, where do I buy it then?” He replied that you had to wait in line just to get into the iPhone demo area, which was roped off.  I asked him how I could get into the demo area and preview the phone.  He replied, “I think the line is outside around the block.”  

I did not recall any queue outside, but nonetheless I walked back up the spiral glass staircase outside.  Nothing except a television crew shooting a special on the CBS early show was in sight.  

I walked down to speak to one more salesman, asking the same question as before “Can I buy the iPhone?”  For the first time, the third salesman responded with an explanation to what he was saying, that the store had no more iPhones for the public (contradicting the second salesman).  He explained that they had given everyone standing in line a voucher, but that they were all out and could not sell one to me.  His suggestion was that I come back.  I asked him, “When should I come back then?”  Responding with no specifics, “You can try back later today.”  

Walking out in disbelief
I left the Apple Store, shaking my head in disbelief and calling 411-directory on my hassle-free Blackberry to locate and walk to an AT&T store in Midtown Manhattan.  I walked in to the AT&T store on Park and 50th.  There was only one person ahead of me, and after 5 minutes, I spoke to Stella who politely answered my questions and pre-ordered for me the iPhone 16 gig.  She said it could take weeks to arrive.  Thereafter, I would still have to come back to that store, wait in line, activate it and then hand it over to our IT department to customize it to our company.

Analysis
I could further analyze the distribution strategy (how Apple is selling a product in a completely different manner than most products with its preordering) and impacting the way it interacts with customers.  But I will sum up the main idea of this experience, the immense difficulty facing executives who want to buy an iPhone to switch from blackberry makes it equally difficult for these customers to convince their coworkers and IT professionals to make the switch.

        

Cinestar Cinemas unveiled its “Gold Class” refurbished cinemas to provide a business-class style movie theater.  Located at the Cinestar Cinemas Marina Mall in Abu Dhabi, movie-goers can relax in spacious leather recliners while eating snacks off well-placed tables.

        

Expatriate Arabs and Expatriate Asians, who compose the vast majority of the population in the UAE and a large proportion of the population in the rest of the GCC, keep in contact with their families back home via VOIP and through their mobile phones. 

An interesting insight to report from our analysts on-the-ground in the GCC countries in the Middle East.  Family members back home often place "Missed Calls" to the expatriates working in the GCC, where they hang up and expect to be called back.  Despite it being cheaper for family members to call from India, Pakistan and from Levant countries, the underlying psychology behind family placing Missed Calls is to see that their family members in the GCC care about them and that the expatriates have enough love to call them back.

        

SIS International es no su empresa típica de la inteligencia del mercado.  Está aquí por qué somos diferentes y cómo proporcionamos el valor a nuestros clientes:

Nuestro Alcance Global. SIS es reconocida como un líder global de investigación, habiendo realizado el Negocio, Competitivo y la inteligencia del mercado en más de 120 países desde que 1990.

Nuestra Experiencia.
SIS ha desarrollado la experiencia y la pericia substanciales en más de 50 industrias. Nuestros servicios que rastrean y las publicaciones añaden a la comprensión necesaria para realizar investigación compleja en todo el mundo.

Nuestros Servicios Innovadores.
SIS ha innovado los servicios de investigación para llevarse bien con las cambiantes necesidades de compañías, de rastrear los servicios a servicios ejecutivos de contestación inteligencia por teléfono.

Nuestro Cliente-Atendiendo a Sensible. 
SIS se da cuenta de que perdió el tiempo es la oportunidad de un competidor del cliente, y responde con toda prontitud a clientes.

Nuestro Reputación. 
SIS International ha realizando investigación para el más de 70% de la Fortuna 500 y muchas de las organizaciones multinacionales más influyentes del mundo.

Nuestro Agilidad. 
A diferencia de muchos suministradores grandes del investigación del mercado, el SIS prepara eficientemente y entrega las propuestas y deliverables de alta calidad.

Nuestra Comprensión.
El SIS Internacional tiene presente la importancia de la competición y sentido del tiempo en la mente.  Vamos más allá de los datos y proporcionamos la inteligencia procesable.

Nuestra Enfoque Creador.
SIS proporciona una vista dinámica del mercado con sus servicios híbridos, integrando numerosas técnicas en sus entregas además de técnicas tradicionales de la investigación del mercado.

Nuestro Valor. 
SIS International proporciona el valor con investigación que es reconocida globalmente y valorar y con la calidad competitivo.

        

SIS International Research es una compañía de Inteligencia de Mercado Global dinámica que proporciona soluciones de investigación comprensiva y servicio de inteligencia estratégico.  Navegue la Economía Global (Global EconomyTM)  con SIS.

La Investigación de Costumbre de SIS tiene más de 25 años de la experiencia de las investigaciones de costumbre internacional.  Ahora, SIS dirige investigaciones en más de 120 países para compañías en más de 50 industrias.  Como una compañía global mediana, SIS International  proporcione la atención al cliente muy sensible de las compañías pequeñas, y los recursos globales redes de compañías más grandes.

Proveyendo las soluciones de la investigación comprensiva y servicios de inteligencia, SIS ofrece una investigación de valor añadido de alta calidad en los mercados globales para muchas de las compañías del mudo más influyentes.

SIS ofrece las herramientas poderosas inteligencia que determinan el tamaño, miden y analizan  los mercados alrededor del mundo.  Los clientes se benefician de un alcance extensivo.

Una Mezcla de la Investigación Híbrida
SIS ofrece una investigación de valor añadido del mercado y una inteligencia estratégica de competitiva - Inteligencia de negocio.

Añadir más valor a la inteligencia con respuestas
SIS provee respuestas a las preguntas urgentes además de la investigación de valor añadido del mercado y las conclusiones de la inteligencia competitiva.

El poder de la investigación primaria
SIS va directamente a la fuente para proporcionar una “inteligencia humana” en su investigación del mercado y inteligencia competitiva.


Servicios

• La investigación cuantitativo del mercado
• La investigación cualitativo del mercado
• La investigación de los mercados emergentes
• Inteligencia competitiva y empresarial
• Análisis Estratégica y Informando 
• La Capacidades Estadísticas 
• Los Grupos Focales
• Las pruebas del concepto del producto nuevo 
• Investigación del mercado medical  
• Investigación del negocio-al-negocio 
• Investigación de Tecnología de Información
• La Entrada al Mercado, La Cuantificación del Mercado, Viabilidad del Mercado 
• La Investigación de la Votación Política
• Los Estudios de Comportamiento de la Compra
• La Segmentación del Mercado
• El Análisis de la Satisfacción del Cliente
• El Análisis de la Satisfacción del Empleado
• El Análisis del Anuncio/Media y Rastrear 
• La Evaluación/ El Análisis del Producto y el Servicio
• El Estudio de la Fieldad a la Marca/ El Cambio de la Marca
• La prueba de gustos/ Sensorial 
• Los Estudios de Rastrear y Medir el Image 
• Los Estudios del Uso y Actitud 
• Perfilar el Cliente 

Su Acceso a los Mercados Emergentes
SIS es reconocido como un líder en el mundo de la investigación global que hace inteligencia negocio, competitivo y mercado en más de 120 país desde el 1990.

Las Soluciones Inteligencias Poderosas
SIS ofrece servicios de la investigación de valor añadido y inteligencias estratégicas.

La Cualidad
Fusionar la investigación con el análisis estratégicas para proveer la inteligencia
Personalizar la investigación a sus necesidades
La Investigación Global y la Fijación de precios competitivos

Ofertar un Acceso Global
Nuestro proyectos de investigaciones son apoyados por las operaciones en todo el mundo

——
Acerca
Fundado en 1984, la compañía hace investigación del mercado, inteligencia del negocio y inteligencia competitiva en 50 industriales en más de 120 países.  Conjunto de su primera división de investigaciones personalizadas (Custom Research), SIS ofrece productos novedosos y servicios para compañías que hacen negocios internacionalmente con productos de investigación mundial y servicios de contestación inteligencia a solicitud. 

        

At the end of the first quarter of 2008, Islamic banks comprised 13.4% of UAE’s banking assets, according to Kuwait’s Global Investment bank.  The sector is on the move with strong growth, rising share of the total banking market, new products and strong deposits. According to this report, the sector is introducing innovative products to account for new market needs.  Among these products are Ijarah and Murabaha.

Many banks in the Middle East already have an Islamic banking unit or even converting existing non-Islamic subsidiaries into Islamic ones.  The report goes on to mention that compound annual growth rate of deposits at Islamic banks has risen 44% over the past 5 years. 

A previous report by SIS International indicates that Islamic Banking has attracted a key market of banking clients, high net-worth individuals (HNWI’s), particularly in the Gulf.  While Bahrain is traditionally known as a hub for Islamic banking, banks in the UAE and Qatar are making in-roads into the market by creating Islamic Financial Services subsidiaries.

Recently, a Singaporean Islamic Bank is expanding in the Gulf.  Non-gulf Islamic Banks like DBS based out of Singapore have their eye on expansion in the Middle East.  The Islamic Bank of Asia, a subsidiary of DBS, expanded in Bahrain in the past year.  The bank is further considering expansion into UAE, Saudi Arabia, Kuwait and Qatar.

        

As part of its investigation into the changing US consumer, SIS International sought to examine the potential future of consumerism and shopping behavior in the United States.  Given the trends, SIS International noticed the following:

The Potential Future For US Retail

• Typical malls, or “single use retail environments”  may disappear as “economic hubs” grow to include residential and office buildings
• Retail and entertainment centers may be the future
• This evolution may have an impact on today’s retailers

Implications for US Market Research

• Consumers may need to be surveyed regarding their retail shopping patterns and preferences
• Increased intercepts in a variety of malls and “open” town centers to gain insights into representative consuming habits

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Copyright (C) 2008.  SIS International Research.  All Rights Reserved.  This article does NOT necessarily reflect the opinion of SIS International's researchers, management or its affiliates.  SIS International makes no representation as to the timeliness or accuracy of this information, and will not be liable for any decision made based on this information. See privacy statement and disclaimer for full limitations on liability.

 

        

SIS International Custom Research explored the changing US consumer for a speech it delivered recently.  Below is its findings.

US Generational Break Down

Matures (prior to 1946)

• Dedicated to a job they take on
• Respectful of authority
• Place duty before pleasure

Baby boomers (1946-1964)

• Live to work
• Generally optimistic
• Influence on policy & products

Generation X (1965-1980)

• Work to live
• Clear & consistent expectations
• Value contributing to the whole

Gen Y/Millennials (1981-1994)

• Live in the moment
• Expect immediacy of technology
• Earn money for immediate consumption

 

—-
Copyright (C) 2008.  SIS International Research.  All Rights Reserved.  This article does not necessarily reflect the opinion of researchers at SIS International Research.  SIS International makes no representation as to the timeliness of this information, and will not be liable for any decision made based on this information. See privacy statement and disclaimer for full limitations on liability.

        

An SIS International analyst attended the 2008 PR Week / PR Newswire Media at McKinsey & Company's headquarters in New York on June 05, 2008.  Speakers included renowned media heavyweights who spoke about the impact of online media on print media and the future of advertising, based on a survey of 1,231 people in magazine, radio, newspaper, blog and television media.

Survey sample:

• 1,231 people in magazine, radio, newspaper, blog and television media.

Speakers:

• Jon Fine, Media Columnist & Blogger, Business Week
• Ronn Torossian, President of 5W Public Relations
• Rachel Sklar, Media/ETP Editor, The Huffington Post
• Dave Armon, PR Newswire's President
  
• Julia Hood, PR Week's Publishing Director
  

Several insights from the conference:

• Reporters are using bloggers for research of a story or phenomenon.  Research is mostly for "sentiment" and not for factual evidence.  According to the survey 73% of respondents use blogs in their research; 19% of respondents never use blogs.
• There is an adverse relationship between Bloggers and PR representatives.  The speakers noted that they often receive dozens of pitches on a daily basis.
• One PR representative noted that he will only correct a blogger in the blogosphere who has printed an inflammatory story if the blog article contains factual information in it. 
  
• The most important aspect of respondents' work is making their content interesting to viewers
• Media professionals are working harder than ever and becoming more aware of the commercial aspect of online media
  

A few insights from the speakers:

• Print media will decline, but will not die because it is a portable and useful medium that can withstand the test of time.
  
• PR people must provide useful information to bloggers for them to follow a story
• Blogging is increasingly important in media. 
  
• Stories are published on blogs often before they reach newspapers and television media.
  
• Technorati is one of the most useful ways to measure conversions and success for blog media.
• Become a "niche" blogger and avoid becoming a generalist
  

        

The Beijing Olympics have not approached unnoticed. China’s grand spectacle which began with multi-billion dollar construction projects including the “Bird’s Nest” stadium has seen worldwide protests and controversy of late, enhanced by the situation in Myanmar (Burma). One story that we have not heard much about is the Olympic sponsor, Lenovo. Besides being a Chinese firm, Lenovo is the first Olympic sponsor to also design the Olympic torch.

Having acquired IBM’s personal computer division, Lenovo is seeking to become the worldwide leader in computer technology. It is headquartered in Beijing, China and Raleigh, North Carolina, USA. In many ways, this firm symbolizes the coming together of two superpowers, and the Olympic sponsorship serves as the ultimate marketing tool for this global enterprise to showcase its “New World, New Thinking” trademark. The venue, however, has both costs and risks.

Last summer, Lenovo quietly opted out of its contract for the 2012 Olympics. While the price-tag for Olympic sponsorship is unknown, experts estimate that it has risen about 10% every four years, and Lenovo is paying between $80-100 million each year. Meanwhile, new media advertising, particularly via internet, has become much more cost-effective. Lenovo is supplying approximately 20,000 computers and 500 technicians for the 2008 games.

More interesting is what happens if controversy overwhelms China in the spotlight. How will the athletes respond to China’s rampant pollution? How many political leaders will decide not to attend the event?  How then, does Lenovo’s sponsorship pay off?  Until these questions can be answered, the Chinese population, filled with nationalism and pride, watch the hours countdown on special monitors around the country.

        

        

Rail transport in the US can be subdivided into passenger-rail and freight shipment segments.  At present, the majority of rail transport in the United States is based in freight train shipments.  Freight railroads are crucial to the nation’s economy – they move 40 percent of manufactured goods and raw supplies. 
Freight Shipment

At the end of 2005 (latest data) 562 common carrier freight railroads were operating in the US.  They are divided into the following categories:

• Class I Railroads – typically operate in many different states and concentrate largely on long-haul, high-density intercity traffic lanes
• Regional Railroads – line haul railroads with at least 350 route-miles and/or revenue of between USD 40 million and Class I threshold.
• Local line haul carriers – operate less than 350 miles and earn less than $40 million USD.
• Switching and Terminal Carriers (S&T) – railroads, regardless of revenue, that primarily provide switching and/or terminal services. 
• In addition, there are two major Canadian freight railroads – Canadian National Railway and Canadian Pacific Railway, both of which have extensive US operations.

 
The US Railroad System
US freight railroads are overwhelmingly privately owned – over 90 percent.  Compared to passenger rail and freight railroads in other countries, they receive very little government funding.  Most of the tracks where US freight railroads operate are owned by the railroads themselves. 

Passenger Rail
Prior to Amtrak’s creation by the Rail Passenger Service Act of 1970, intercity passenger rail service in the United States was provided by the same companies that provided freight service.  When Amtrak was formed, in return for government permission to exit the passenger rail business, freight railroads donated passenger equipment to Amtrak and helped it get started with capital infusion of some $200 million USD.  Today, Amtrak is the only intercity passenger railroad in the continental United States. 
 
 
Key Issues Facing the Industry
A.  Legal issues
 
Freight Rail   
One of the critical policies on transportation in the US concerns shortage of rail capacity that hinders the timely and reliable delivery of coal and ethanol to consumers.  Without adequate rail capacity, the county could be awash in ethanol and coal but unable to use it.   US rail operators concede that they have capacity problems and say they are pouring money and other resources into efforts to resolve them.  The Association of American Railroads notes that from 1996-2005, railroad capital investments were 17% of revenue.  However, rail operators are still asking for federal legislation for tax incentives to enable still more capital investment that would increase their efficiency and capacity. 
 
The "Freight Rail Infrastructure Capacity Expansion Act of 2007” has been introduced to the Senate.  It is intended to address the need for expanding the nation's freight rail capacity by allowing up to a 25 percent tax credit for the expansions. 
 
Passenger Rail
The Passenger Rail Investment Reform Act makes key reforms to transition Amtrak purely into an operating company, creating a federal-state partnership to support passenger rail, introducing market-based competition to the system, and setting up an inter-state compact to maintain the heavily used Northeast Corridor service.

Under the legislation Amtrak will no longer carry the burden of maintaining tracks, stations, and other infrastructure.  Amtrak will have the ability to be an operating company, focused solely on running trains safely and on time.  Regional, state, or local authorities will be empowered to make decisions about service, planning where it is and what best meets local transportation needs.  In addition they will ensure rail operators are providing a reliable, efficient, and cost effective service.
 
B.  Social/Demographic issues

Mode of Transport   
New York City has an extensive subway system, and the passenger rail is a highly used mode of transport.  About two-thirds of all US passenger rail riders, and one in every three US mass transit users, lives in New York City; Chicago has a similar but smaller metro system
 
Security
One of the major concerns in passenger rails is terrorism.  More than 12 million Americans travel on passenger rail lines each weekday, and because of its open nature, rail transit is considered an attractive terrorist target.  While there have been no successful attacks on US rail systems recently, attacks on passenger rail systems around the world—such as the London Underground in 2005—highlight the vulnerability of rail travel and the importance of rail security for passengers.
 
A study by RAND, a nonprofit research organization, found that 80 percent of the worldwide attacks on rail systems were bombings, followed by sabotage (6 percent) and armed attack (6 percent).  Explosives accounted for 77 percent of the weapons used in rail system terrorist incidents, with 8 percent of the incidents involving hoaxes or threats.
 
C.  Technological issues
Emerging technologies in transport are involved in improving communications and safety.  The following are some of these technologies.
 
•    Wireless LAN Hotspots in Trains
A group called Railway Wireless LAN Services projects that over the next five years, 625 million people will be traveling on WiFi-enabled trains worldwide. 

Mobile hotspots represent an opportunity for train operators to generate significant new revenues and to bring their onboard entertainment and business services into the 21st Century.  On-train wireless solutions and service providers are to gain exclusive access to a captive audience of premium wireless internet users. 

•        Mobile Notification of Delays
Transportation strategists at IBM predict that soon, travelers will get notifications of train and bus delays via cell phone.  Using sensors, GPS technology, and in-vehicle communications, an innovative transport system will send notifications of train and bus delays, or if an alternative route will be faster or more convenient.  The same systems will allow schedulers to make real-time route corrections.

•        Ultrasonic Technology for Rail Inspections
In 2006, a new technology using laser beam pulses was developed by researchers at the University of California in San Diego (UCSD) to find defects in steel railroad tracks, including hard-to-find internal cracks that can break under the weight of passing trains.  This is an important breakthrough in railroad transport technology, because some of the worst derailments in the US have occurred on tracks inspected by the old technology, which often missed interior cracks in rails, causing train derailments. 
 
Major Players in the US Rail Industry
According to the Association of American Railroads, railroad companies in the United States are generally separated into three categories based on their annual revenues:

•    Class I for freight railroads with annual operating revenues above $277.7 million (2004 USD)
•    Class II for freight railroads with revenues between $10 million and $50 million in 1978 USD
•    Class III for all other freight railroads

The following are major US Railroads:
 
1.    Amtrak
2.    Burlington Northern Santa Fe (BNSF) Railway
3.    CSX Transportation
4.    Kansas City Southern  Railway
5.    Norfolk Southern
6.    Union Pacific Railroad
 
Trends, Opportunities, and Threats
 
Challenges and Opportunities
 
Recently, some key changes have occurred within the supply chain segments that have impacted the rail road industry, resulting in corporate changes to their service offerings.
 
First, the rail road industry is keeping pace with the strong demand for international intermodal traffic.  However, the anticipated growth in volumes of imports suggest that there will be continuing pressure placed on current rail assets, requiring more efficient processing centers in the near future. 
 
Second, in the past, ocean carriers have offered door-to-door service for international intermodal containers providing importers with a service called Inland Port Intact (IPI rates).  This means that the container moves from the foreign port to the US port, to rail and to an inland destination from the inland intermodal rail terminal to the importers distribution center, all on the same Bill of Lading/Pricing process.  However, the carriers have recently indicated a lack of will to support destinations inland beyond large distribution hubs, or beyond cities where they have significant volumes and can control empty container flow.  This trend is essentially reducing the number of inland ports or gateways where service will be provided by the carrier.  This shift reduces the number of destinations for the rail provider, increases the volume of destination-centric volume, and improves reverse logistics volumes from key gateways.
 
Third, the rail operators are no longer willing to support the traditional “rail-served” buildings that stand alone or are concentrated in specific areas of a community or city.
 
Lastly, the increased volume of imported vehicles will require that the rail carriers reengineer their approach to vehicle management and related assets.  The US is preparing for an onslaught of vehicles from Chinese producers, with some entering the US by way of vehicles assembled in Mexico—thus providing access to that market in parallel.
 
The Logistics Industry Growth
The slowing US economy is derailing the growth of the logistics industry, specifically rail.  But despite falling volumes, most rail providers and market analysts say rail rates are not dropping.

Demand for rail carloads has fallen 2% so far in the 3rd quarter of 2007, following a 3.3% overall decline in the second quarter.  The Association of American Railroads (AAR) reports that combined cumulative rail carload volume for the first 35 weeks of 2007 on 13 reporting US and Canadian railroads was down 3% from last year, while container and trailer traffic was down 1.1%.

Despite the volume decline, analyst group Bear Stearns reports in its Supply Chain Indicator Study that rail rates increased by about 3.9% in the second quarter of 2007.  The group notes that there is sustained momentum in rail rate increases in 2007, driven by expectations for long-term strong rail freight demand and ongoing tight rail capacity. 

Burlington Northern Santa Fe (BNSF) CEO Matt Rose said the railroad's pricing should remain strong into 2008, but price hikes could "decelerate" if freight volumes remained soft.  These bullish predictions are keeping companies like BNSF buoyant – the company announced in September 2007 that Berkshire notified the railroad that it plans to invest nearly $598 million USD in Burlington Northern stock on top of the 52.13 million shares it already owned



[Copyright (C) 2008.  All Right Reserved.  See privacy policy and limitations on liability.]

        

Yet 2.com is a site that lists and leverages intellgectual property and technologies for other parties.  It works by connecting buyers and sellers of technology and intellectual property.  Specifically companies gain the tools to license, acquire, sell and license intellectual property.

One of the most substantial obstacle in today's business world is the lack of knowledge on how to find a relevant solution for a specific need. Essentially the site circumvents this obstacle by offering solutions based on a search query. 

Yet 2 can enhance innovation and help limit the time necessary for development, a major expense for companies in today's fast-paced market.  An example of the site in action is Procter & Gamble's listing its need for Metal Protection Technologies for use in Home or Commercial Automatic Dishwashing detergents. 

Additionally, Research firms can use this tool to search for emerging technologies.

        

An excerpt from Ruth Stanat's article "Global CI Blue Print" in the Competitive Intelligence Magazine by the Society of Competitive Intelligence Professionals (SCIP).

Below are some of the pitfalls in Global Competitive Intelligence in Emerging Markets:

Pitfall	Origin of Pitfall
Forgetting Demographics	Considering country homogeneous e.g. ignoring religious diversity
Useless Fact-Finding Trips	Ineffective trips with little endings e.g. meetings in hotel, no exploration
Information at Face-Value	Differing data on competitor e.g. company has 3 sets of financial data
Market Overestimation	Overly optimistic projections e.g. product’s adoption rate
Dated Research	Market intelligence at one time e.g. ignoring new economic factors
Myopic CI Focus	Focusing only on competition e.g. neglecting political environment

Copyright (c) 2008.  All Rights Reserved.

        

A brief excerpt from May/June Issue of Competitive Intelligence Magazine - Written By Ruth Stanat, President of SIS International Research.  Courtesy of the Society of Competitive Intelligence (SCIP) and the Competitive Intelligence Magazine.  All Rights Reserved.

Global Competitive Blue-Print
Ruth Stanat, SIS International Research.  Written in Competitive Intelligence Magazine

Global markets are a tempestuous sea of risks and opportunities for many companies. Competitive intelligence is not just a means of growth, but a requirement for survival no matter what the company’s size. Missteps and misunderstandings in global markets can cost billions of dollars. Companies are now creating positions dedicated to their strategic objectives, such as chief strategy officer, to better achieve their competitive objectives. The increased importance of strategic thinking stems from the many global companies whose initial market assumptions are continuously challenged or found to be flat-out inaccurate. About 4 billion consumers in emerging markets currently represent a total market value of US$5 trillion. From the most-considered emerging countries like Brazil, Russia, India, and China to peripheral markets like Thailand, Turkey, and Malaysia, companies need not only market data on their competitors but also must know about recent competitive actions and gauge a competitor’s possible reactions. These companies certainly need to understand their competitors’ vulnerabilities and strengths. With this insight, companies can carefully capture opportunities and maneuver through

the global economy’s rapid transformations. This article discusses the elements and current challenges of global competitive intelligence and presents a model for effective intelligence gathering worldwide.

THREE ELEMENTAL E’S

Today’s intelligence practitioners face several changes and trends:

1) Competitive intelligence is increasingly essential for a company’s survival.
2) The rapidly changing business environment affects the understanding of and methods for intelligence gathering. The nature of globalization and local events affect the actions of customers, competitors, and companies.
3) The evolution of global intelligence gathering is towards integrated and hybrid approaches designed to comprehensively understand not only competitors, but also customers and the macro-environment.


1. Essential Competitive Intelligence
Global companies expanding into emerging markets often end up competing with local giants. For example, despite its universal brand name, Coca-Cola competes with local beverage makers in Latin America. The local and entrenched competitors have the brand image and pricing to compete with them. Even if companies have voluminous market research findings on certain emerging markets, they must develop and implement strategies appropriate to each individual market. Global companies must notice the way competitors understand the local market and employ appropriate strategies in response.

2. The Environment of Global Business
Relationships among people, markets, and business processes are becoming increasingly interlinked. For example, a company in China may employ strategies and actions comparable to those used in the United States. However, development and globalization do not fully standardize local practices. Instead, emerging markets adapt global processes and practices to local traditional environments, producing a “glocal” landscape. Indeed, competitive companies largely behave within the bounds of their markets and local governmental policies, as well as within global markets and standards.

3. The Evolution of Strategic Intelligence
Companies now look for integrated or hybrid methodologies to understand their environment. Competitive intelligence (CI) is extraordinarily useful in crafting and delivering strategy and responding to competitor developments. However, seeing through this perspective alone overlooks the customer viewpoint and satisfaction in their local market, traditionally a tenet of market research. After all, a firm can implement the shrewdest actions to counteract competitors, but if the firm’s market does not demand such actions, then the company is at a loss. Finding the correct intelligence mix for clients is crucial for CI to provide value. Each of these three elements suggests an increasingly complex environment for global intelligence gathering. The methodological challenges in conducting emerging markets competitive intelligence presents added obstacles for today’s CI practitioner.

CHALLENGES IN GLOBAL INTELLIGENCE GATHERING

Attempting to apply traditional intelligence-gathering techniques to research covering emerging markets can cause trouble. People around the world may engage in the same global business processes, but their reaction to stimuli depends on myriad influential factors, including personal, cultural, socioeconomic, technological, and local factors.  Despite research methodology quality and researcher expertise, these influential factors can control and sabotage research quality. Both primary and secondary data collection provide a challenge for global researchers.

Primary Research: The Power of Elicitation
Because of its reliance on people who come from different nationalities and cultures, primary research is often the most difficult aspect of international intelligence gathering. Accordingly, international human intelligence-gathering processes differ significantly from domestic ones. For example, in China and several other emerging Asian markets, researchers may find the process of elicitation extraordinarily easy. 

What they may not realize is that the executives are not only providing inaccurate information but intentionally misleading information. They believe that researchers are a tool of the competition — as can often be the case.

Moreover, emerging markets research frequently lacks reference points for triangulating collected data from other sources. For example, a person may report that the construction industry is growing at 30 percent, but no independent data can confirm this number. Simultaneously, a competitor may say that the same market has a 10 percent growth rate. You will have to dig deep among existing and new informants to uncover the real picture. Misunderstanding cultural norms and practices affects research outcomes. For instance, the perception that exported Western technology is superior and bound to be successful among consumers in the local market is not supported in some countries. An example of this is the possible introduction of high-technology cellular communications. While telephone penetration is low in countries like Nigeria, this market could provide high-technology growth and a place to develop a competitive advantage with technological products among consumers. But this perspective ignores cultural norms and existing, time-trusted means of communication, which have significant influence on whether a technology will succeed.

Indeed, the glocal concept arises again when describing competitor actions. Though many local business leaders have been trained in prestigious business schools abroad, their strategy, actions, and decisions are a mix of global macroeconomic factors and influential factors like personal,local, economic, or cultural norms. For example, a Chinese company may react to the same new opportunity as a Canadian company in a different manner, according to the local culture and the company’s experience. The Chinese company may be more risk averse than the Canadian one, but may be much more aggressive and efficient in pursuing low-risk opportunities. Likewise, glocality makes your task of gauging a competitor’s behavior all the more complex, requiring you to have an in-depth understanding of foreign markets.


To read more of this article, log-on to the SIS International Worldwide Intelligence Library or scip.org.

Copyright (c) 2008.  All Rights Reserved.

        

China has recently been in the news with the negative protests surrounding the Olympic torch ritual which precede the Olympic Games in Beijing this summer.  With disruptive protests in France and the United States, Chinese youth struggles to define and "market" itself to the world.

Our research on China's Generation Y has demonstrated that Chinese youth are strongly pro-China.  Prior to the Olympics, our research showed that the youth held pro-China sentiments toward Taiwan.  Further probing and analysis indicated a mild tension between the West and the East, which the youth handle on a daily basis from chatting on the internet to arguing with their traditional parents at home.

Our current tracking of China's youth indicates that Chinese youth are becoming more defensive to their integration to the world amidst the Olympic games.

SIS International Research published the first book on China's Generation Y, on the youth born between the years 1980 and 1990 based on extensive interviews with young peoples in Chinese urban centers.  Michael Stanat, author of China's Generation Y and a Senior Analyst on youth marketing worldwide at SIS International, states,

"China's youth are facing China's first hurdle to its most important rendez-vous with the rest of the world in recent times.  An attack on the Olympics is an attack on the new China and therefore an attack on the identity of China's rising youth who are the architects of such a culture.  This perspective is necessary as the Olympics progress and the youth carefully scrutinize the reactions by others to China's major introduction to the world."

Since China's youth are bridging the gap between Western and Eastern cultures, the tension arising over the last few months is of significance to young Chinese individuals.  According to Stanat, it causes them to further struggle to redefine their country's and their own image.   Consequently, this tension weakens the allegiance that China's youth has towards the Global youth culture.

Secondly at such an impressionable and important event, this tension provides the roots of deep-seeded tension.  Allegiances and associations will be reevaluated.  The youth will not easily forget France's reaction to the torch relay or demonstrations throughout several Western countries.  While it is unlikely that China's Generation Y will immediately boycott the brands that they hold dearly and that define them as a generation, they will not forget the events in other countries related to China's Olympics. These attitudes can impact buying decisions.

The Olympics are not just a sporting event to China's Generation Y.  Essentially, this historic event is a proclamation of individual identity.