The main trends, opportunities and challenges facing businesses in financial services, entertainment and the mass media, construction and retail trade were the focus of an event held in Nicosia by PwC Cyprus.
The discussion was based on the findings of the 19th CEO Survey, entitled “Redefining business success in a changing world”, which gathered the input of more than 1,400 CEOs from 83 countries.
Specifically, 176 CEOs from the international banking sector, 76 from the entertainment and media sector, 133 from the construction sector and 358 from the retail and consumer sector participated in the survey, responding to questions relating to their company.
In the entertainment and media sector, 77% of CEOs said they faced more threats compared to three years ago and 61% said there were more opportunities. The situation also appears to be difficult in the banking sector, with 71% and 55% stating the same respectively.
CEOs in the construction sector also face more threats, according to 64% of participants, compared with 49% who saw more opportunities. In contrast to the other sectors, CEOs in retail trade are more positive, with 61% saying there were more opportunities now than before and 58% more threats.
The banking sector in Cyprus has seen significant improvement in terms of providing liquidity and loan restructuring. However, the dangers remain, with credit institutions facing challenges relating to acquisitions and mergers, but also the need to invest in new technologies, expand services and find new markets to finance.
There is strong competition in the Cypriot entertainment and media sector because of the rise of the internet and the appearance of new players in the local and foreign market, increasing the need for innovation and investment in new technologies, together with reducing costs.
The construction sector shrunk to 2.8% of Cyprus’ GDP in 2015 compared with 9.5% in 2008, as the prolonged period of reduced property prices, low demand and the imposition of VAT on residential plots had a negative effect on the industry. However, the gradual increase in capital expenditure in the State budget in the coming years is expected to positively affect the industry.
Retail trade in Cyprus is showing an impressive recovery due to an increase in consumer spending. However, the lack of liquidity on the market creates added dangers, particularly for the big supply chains, which because of their size are more vulnerable to problems. Similarly important is the need for businesses in the sector to incorporate online services for consumers because of increased internet use.
During the event, presentations focused on the benefits and challenges of deals using real examples of successful transactions, on re-structuring and redesigning business operations but also on the importance of corporate culture as a competitive advantage.
“All organisations today are exposed to an increasingly globalised system, which as a result means the success and potential of their activities depend on many interrelated factors, such as global stability and versatility, the regulatory framework and trends in each sector,” said PwC Cyprus CEO Evgenios Evgeniou.
“Particularly, the geopolitical developments that affect our region, such as the United Kingdom’s recent decision to exit the EU, are a catalytic factor, which should be evaluated appropriately by each enterprise in terms of the challenges and opportunities it may entail.”
