“Companies must invest in and adopt technologies that allow them to operate efficiently and effectively in the markets.”

Interview with Francisco González López, director of the International Trade Management programs at ESIC Business and Marketing School

In 1965 ESIC was founded as an educational institution focused on the world of marketing. Today, nearly 60 years later, this business school maintains its objective of training people with a global and comprehensive vision in management, marketing, innovation and digital skills throughout their entire professional cycle.

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To serve this purpose, ESIC has a faculty of professors with close ties to the business world, 123 strategic agreements with universities and business schools around the world, 12 campuses in Spain, agreements with 2.500 companies to facilitate the employability of their employees. students and an alumni network made up of more than 62.000 professionals.

 

Francisco González López, director of the international trade management programs and director of the Business category at ESIC Business and Marketing School, analyzes in this interview for EmpresaExterior the challenges that Spanish companies face to implement innovation and achieve competitive in international markets. 

 

What is expected in 2023, regarding the foreign sector? Do you predict a year of change or stability?

 

Francisco González: “It is important to keep in mind that the foreign sector is very broad and diverse, so trends and perspectives can vary considerably depending on the sector and region. In general, however, The global economy is expected to continue its recovery after the pandemic, although at an uneven pace depending on the countries. In this context, international trade is expected to continue recovering, although some challenges are also anticipated. One of them is the persistence of trade and geopolitical tensions between some countries, which could affect the flow of goods and services between them. Additionally, inflation and inflationary pressures can affect international trade, as higher prices can decrease demand for some products.

 

As for emerging markets, they can be expected to continue to be a important driver of global economic growth, although they may also face some challenges in the form of financial volatility and political and social problems, among others. In summary, although the future is always uncertain and there are many factors that can influence the foreign sector, we hope that in 2023 the global economic recovery and the increase in international trade will continue, although there will also be challenges and obstacles that must be addressed.

 

What are the main challenges that international companies face when implementing innovation?

 

FG: “A few challenges can be listed that companies may face when trying to implement innovation, such as, for example, cultural barriers, as business culture can vary significantly from country to country, which can make it difficult to implement new ideas and processes. International companies may have to adapt their approach to meet local cultural expectations. 

Second, the communication problems, language barriers and cultural differences can make effective communication between innovation teams and other company departments difficult. This can lead to misunderstandings and inadequate implementation of innovative ideas. 

In third place, costs, as innovation often involves investing significant resources in research and development, which can be very costly. Furthermore, the cost of implementing new technologies and processes is also high. 

In fourth place, regulations and laws vary from one country to another, which can create barriers to the implementation of innovation models. International companies may need to comply with different regulations in different markets, which can be very complicated.

In fifth place, the lack of resources can be critical in implementing innovation effectively. This may include a lack of qualified personnel or a lack of funds to invest in new technologies and processes.

Finally, resistance to change which is a constant in many organizations. International companies may encounter opposition from employees who are comfortable with existing processes and do not want to change.

The implementation of innovation as a structural part of companies can be a significant challenge for them. Overcoming cultural barriers, communication problems, costs, regulations and laws, lack of resources and resistance to change are all obstacles that must be addressed for innovation to be successful.”

 

 

What do you think are the most disruptive trends in your sector of activity today? What weight does innovation have?

FG: “They are many and varied, given that it is a very active and research sector and, therefore, there are several disruptive trends. The way we teach and learn is being transformed. We could name some of the most relevant:

• Online learning: It has become a popular choice for students seeking to earn a college degree. Universities and colleges are offering a wide variety of online programs to serve students looking for flexible and accessible learning.
• Micro credentials: Microcredentials are a form of modular teaching that allows students to earn specific credentials in a particular area of ​​knowledge. These credentials can be more affordable than a full college degree and offer a way to gain specialized skills and knowledge.
• Artificial intelligence: Artificial intelligence is being used in higher education to help improve the learning experience. For example, chatbots can be used to provide quick answers to common student questions, while data analysis systems can help teachers identify areas where students need more help.
• Virtual and augmented reality: Virtual and augmented reality can be used to create immersive learning experiences that help students understand complex concepts in a safe and controlled environment. For example, medical students can use virtual reality to practice medical procedures before performing them on real patients.
• Personalized learning: Adaptive learning technologies are allowing teachers to personalize students' learning experience based on their individual needs. Students can receive immediate feedback on their progress and receive assignments and activities tailored to their skill level.

Higher education is undergoing a significant transformation thanks to technology and innovation. The adoption of these disruptive trends is changing the way we teach and learn, making education more accessible and effective.”

 

What importance does ESIC give to sustainability? 

FG: “Sustainability in higher education is critical to preparing students to meet the environmental, social, and economic challenges facing our world today. Here are some reasons why sustainability is important in higher education:

• Social responsability: Universities and colleges have the social responsibility of preparing students to be responsible citizens committed to sustainability. Students who graduate from programs that emphasize sustainability are better equipped to address social and environmental challenges.
• Preparation for the labor market: Sustainability is increasingly important in the labor market. Companies are looking for employees who are trained in topics related to sustainability and corporate social responsibility. Students who graduate from higher education programs that emphasize sustainability are better prepared to succeed in this evolving work environment.
• Reduction of environmental impact: Higher education institutions are large consumers of energy, water and other natural resources. By emphasizing sustainability in their programs and operations, they can reduce their environmental impact and demonstrate leadership in the fight against climate change.
• Research opportunities: Sustainability offers many opportunities for interdisciplinary research and collaboration. Higher education programs that emphasize sustainability can offer students the opportunity to engage in meaningful and relevant research in this field.
• Impact on the community: Higher education institutions can have a significant impact on their local communities. By emphasizing sustainability in their programs and operations, they can demonstrate leadership in the fight against climate change and promote sustainable practices in the community.
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It is essential that in higher education we prepare students for the environmental, social and economic challenges of today's world, to reduce the environmental impact of higher education institutions and to demonstrate leadership in the fight against climate change.

 

What do you recommend to companies that they must implement, if they have not already done so, in their business models?

FG: “To succeed in international markets, companies must adapt their business models to the characteristics of each market and to the needs and preferences of local consumers. Special attention must be paid to market research, localization and customization to the specific characteristics of each market. This may include adapting the product or service offering, pricing strategy, marketing and advertising, among other aspects.

Another aspect to consider are the strategic alliances with local partners that helps them enter a foreign market and take advantage of their experience and knowledge of the local market.

Technology is also key. They have to invest and adopt technologies that allow them to operate efficiently and effectively in the selected markets. This may include the adoption of online communication and collaboration technologies, business management systems and e-commerce platforms.

Last but not least, sustainability, since it is increasingly present in international markets. Companies that can demonstrate A commitment to sustainability can have a competitive advantage in international markets and attract consumers who value this aspect.

In summary, business models must be adapted to the specific characteristics of each market and the needs and preferences of local consumers. Market research, localization, strategic alliances, technology adoption and sustainability are some of the strategies that can help companies succeed in international markets.”

 

According to your experience, does the level of competitiveness of companies from other countries compared to Spanish companies in general pose a threat at this time?

FG: “The level of competitiveness of companies from third countries compared to Spanish companies is a threat that exists at the moment, as at any time in the globalized market. Competition in international markets is increasingly intense and companies from third countries can offer products and services at lower prices or with higher quality than Spanish companies. However, The threat of competition can also be an opportunity for our companies. If they adapt to market trends and offer competitive products and services, that is, quality plus added value, the success factors multiply. 

Competition has always existed and to do so we must innovate in products and processes, improve operational efficiency, product adaptation, creation and investment in marketing. In addition, Spanish companies can also seek opportunities for collaboration and partnership with companies from third countries, either to access new markets or to improve their operational efficiency. Collaboration and partnership can be effective ways to leverage the benefits of both companies and achieve a stronger position in the international market.”

 

In which sectors are you seeing the phenomenon of loss of competitiveness of Spanish companies most strongly? 

FG: “The phenomenon of loss of competitiveness of the Spanish company is not exclusive to a particular sector, but has manifested itself generally in many sectors of the Spanish economy in recent years. However, there are some sectors that have been more affected than others, including:

• Textile: The Spanish textile sector has lost competitiveness due to the entry of low-cost products produced in Asian countries, especially in China and with their own brands.
• Manufacturing industry, which has experienced a loss of competitiveness due to high labor, production, raw material and fiscal costs and the low prices of products imported from countries with lower general costs and salaries.
• Construction, which has experienced a sharp drop in demand due to the economic crisis, which has led to a decrease in the competitiveness of the sector and the entry of foreign construction companies to compete locally.
• Agriculture, once again due to competition from products from lower wage countries and increasing labor, social, fiscal and energy costs.
• Tourism, and although tourism continues to be one of the main drivers of the Spanish economy, competition from other tourist destinations and the lack of investment in tourist infrastructure have affected the competitiveness of the sector.

It is important to highlight that the loss of competitiveness is not a problem exclusive to Spanish companies, but is a global phenomenon that affects many advanced economies around the world. To regain competitiveness, Spanish companies must adapt to market trends and innovate in quality products and services with added value, in addition to improving its operational efficiency and seeking opportunities for collaboration and partnership with other companies to take advantage of synergies. But administrations must also help manage this competitiveness by reducing minimize tax burdens that suffocate companies.”