The business world is on the brink of a major shift as we approach the year 2025. The Strategy Institute (TSI) is looking ahead to the next few years as experts predict an inflection point in the wake of the pandemic. What will the future look like for sectors such as finance, energy, technology, healthcare, and consumer and retail? And how will these sectoral forecasts impact business strategy moving forward?
When it comes to strategic planning, different industries require different approaches. In the oil industry, the focus is on defending competitive positions and maintaining unique capabilities due to high entry barriers for new players. On the other hand, the internet industry thrives on innovation and rapid changes, making it essential for businesses to stay ahead of trends and evolve continuously.
According to a study by the Harvard Business Review, companies that align their business strategy with their industry environment tend to see higher returns. Along with traditional business strategy frameworks, strategists need a deep understanding of the industries they operate in to develop effective strategies.
As the pandemic accelerates change across industries, let’s take a closer look at how five major sectors are expected to evolve by 2025.
### Finance – Putting AI at the Core
The finance industry is undergoing a technological revolution, with artificial intelligence (AI) playing a central role. By 2025, AI is expected to reshape the global finance landscape, increasing efficiency, speed, and customization. Tech giants like Amazon and Google are venturing into AI-based finance, while regulators are expected to set new benchmarks and policies to govern its use.
### Energy – Bets on the Green Economy and Decarbonization
The energy sector is on the verge of transformation, with a shift towards decarbonization leading the way. By 2025, governments and companies that lead the charge in cutting emissions will reshape the energy supply and demand landscape. China is poised to dominate the global energy market by providing technologies that support decarbonization.
### Consumers and Retail – Going Virtual with eCommerce and Intangibles
The consumer and retail sector has seen a significant shift towards online shopping accelerated by the pandemic. By 2025, consumers will rely on eCommerce for all their needs, prompting businesses to innovate their online delivery services. The focus on intangible assets such as trademarks and software is expected to increase, with companies investing more in these areas.
### Technology – Rise of New Competitors and Specialist Hires
The technology sector is witnessing the rise of new digital champions and a shift towards hiring specialists with industry-specific knowledge. By 2025, a new generation of tech companies is expected to emerge, leading to a digital oligopoly with ‘a few winners take most’ dynamics. The focus on technology ethics will also increase, with specialists playing a crucial role in navigating this landscape.
### Healthcare – Increasing Access to Care
The healthcare sector has seen significant innovations driven by technology, such as Internet of Medical Things (IoMT) devices and telehealth services. By 2025, telehealth services are expected to gain more traction, covering a wide range of healthcare needs. Business strategists in the healthcare industry will need to reimagine the role of healthcare personnel and adapt to a hybrid way of providing services.
### The Future of Business Strategy in a Tele-World
As we look towards 2025, the world is moving towards a ‘tele-everything’ environment, with technology playing a central role in every sector. Better speech recognition, real-time language translation, and sensory suits are just a few technologies expected to become part of our everyday lives. As the digital landscape continues to evolve, businesses need to be prepared to lead their industries with the right strategic approach.
The new business ecosystem requires a high level of strategic skillsets to navigate the complexities of the tele-world. Gain the proficiency and confidence to lead your industry into the future with business strategy certifications from The Strategy Institute (TSI), guided by industry experts and futurists. Are you ready to embrace the challenges and opportunities that lie ahead in 2025 and beyond?