The 2002 FIFA World Cup recently held in both Japan and the Republic of Korea was also the first held in Asia. It kept an estimated worldwide audience in excess of 1 billion riveted to match broadcasts for almost a month with the kind of exciting plays only world-class players can produce.

The national squad responded marvelously to the nation's expectations by reaching the final 16 for the first time in history.

I, like many other fans, had to be content with watching the World Cup on television.

While watching, I was intrigued that many commentators used the number of players playing in premier overseas leagues as a de facto measure of a team's strength.

They concluded that in order to proceed further in the next World Cup, Japan needs to have more players in the squad with experience playing in overseas leagues, as such world-class players raise the level of the whole national team, making it possible to compete successfully on the world stage.

Exactly the same situation applies in the business world. There are clear differences in the performances of businesses that polish their games in the toughest markets and those that do not.

Our parent, Cable and Wireless plc, is a global operator providing business communication services to corporate customers in over 70 countries around the world.

In contrast, International Digital Communications Inc., the forerunner of Cable & Wireless IDC Inc., was a local telecom that clearly lifted the standard of its game after joining the C&W Group in 1999.

So what are the advantages of being a world-class (global) player?

First and foremost, global players are able to provide a consistent quality of service at both global and local levels.

Second, global players are able to pass on the benefits of cost synergies arising from ownership of larger-scale infrastructure and global purchasing ability to their customers.

Third, global players are able to recruit highly talented personnel in local labor markets because they offer opportunities for development unique to world-class (global) operations.

While the last two advantages are self-explanatory, the significance of the first is not immediately obvious.

Together with an expansion in market needs, companies are also actively expanding overseas for a variety of reasons, including lowering production costs and developing new markets. Of course, these companies also must make a decision about suppliers: should they take their domestic suppliers along with them, use local suppliers, or switch to global suppliers? The first option does not require any specification changes, but increases project risk due to the added risk of supplier failure.

In contrast, using local suppliers generally requires major specification changes and presents quality control issues.

My experience tells me that except for a few companies with exceptional competence in nurturing and educating suppliers, most companies heading overseas choose to reassess their relationships in favor of global suppliers.

Therefore, being able to provide customers with the same quality of service, irrespective of the place or channel used, is an advantage for global players, and this is no less true with the business communications services in which Cable & Wireless IDC competes.

World-class soccer players can probably play in any league around the world. However, in order to really draw the crowds, they would have to adapt their game to produce the kinds of plays that would really excite the local fans.

Similarly, world-class companies are able to participate in most markets with a certain degree of success.

However, becoming a truly successful global operator requires having the same level of understanding about local preferences and service requirements as established local competitors. Only then will customers choose your service over those of local competitors, finally allowing you to leverage the advantages of being global.

However, being both world-class and sensitive to local market needs is not easy.

In recent years, we have witnessed many mergers, acquisitions, and joint ventures in a myriad of industries.

Most of this activity is intended to enable these companies to survive and expand in both global and local markets through pursuit of scale advantages.

In the past, this in itself was regarded as a formula for global success. However, the successful businesses of tomorrow will be those that are able to leverage the advantages of being world-class with the local sensitivity to develop products and services from the outset that satisfy local customer requirements better than the competition.

Being both world-class and understanding local markets allows a business to identify and exploit opportunities faster than local competitors and over time open a lead over even the toughest of competitors rooted in single local markets.

Therefore, those who are unable to satisfy both the global and local requirements of customers will be unable to keep pace with changes in the marketplace and be forced out of the market or relegated to roles as niche players.