Globalization is very broad and its effects are very visible in numerous aspects of our lives; career, education, business, mental orientation, just to mention a few. Sometimes we think globalization does not affect us, but it does in a great way, which we may not notice because some of us are not aware of these effects of globalization.
Globalization is a vast concept, which has become one of the major factors in entrepreneurship in this era. It’s a phenomenon that affects the economy, society, environment and business life in different ways. Majority of all corporations have been affected by these changes. These changes are rampantly associated with the increase of competition and changes in technology and communication. To overcome these changes, business owners need to remember various areas, where globalization majorly affects.
The world in general is becoming a global village, hence every activity that takes place in it, should meet up with the global standards of the 21stcentury world. However, we will be sharing great tips on how your business can survive globalization.
Depending on how big or small your business is, the impact of globalization may vary. On the higher level (government) policies are often put in place to reduce the negative effects of globalization on a nation; however, coming down to our level, while the government is trying to make the positive effects of globalization more than the negative, there are effective ways you can survive as an entrepreneur.
Change they say is a constant thing in life; it is also an inevitable aspect of globalization. Change in globalization, comes in form of market expansion, international reach, change in prices and the list goes on. Globalization has both positive and negative implications for entrepreneurs; however for developing economies, the negative impact outweighs the positive. Hence it is advisable that developing countries make conscious effort to adopt economic policies and measures that will manage the influence of globalization on entrepreneurship, in a way that will reduce the negative impact and promote a more friendly market. Below are easy tips on how your business can survive globalization.
Larger Markets; looking at globalization from a business perspective, one of its effects is a larger market. This entails that a business, which had previously sold its goods in a domestic market, can now sell products to customers from other countries. One example of having larger markets can be seen in the auto industry; as buyers/sellers from a particular country, now have access to different brands of cars manufactured in other countries. Since the market is larger, if you don’t grow with it, you’ll be left behind.
Cheap resources; this is as a result of bilateral trade agreements. Recently, most countries produce goods at a cheaper rate that makes a reduction in price possible. This could a good and bad effect, most especially in a very competitive market, because it presents some difficulties for upcoming business men and women. If you are new in the market, one thing you can do is to make your goods unique or give it an edge. This way even though there are several goods like yours around, the uniqueness of yours will make it a customer’s first choice.
International development, is a major effect of globalization, it comes as a combination of expanded markets and cheaper resources. A major example is the information technology sector of India, with the help of an educated and cheap workforce, foreign companies had the opportunity to setup subsidiaries of high tech activities in major cities. The spread of this technological know-how to local firms, led to the expansion of markets in India and the rest of the world. It’s necessary to upgrade your business to make the type of money and customers you want.
Globalization leads to increased competition, which can be related to product/service cost, price, target market, technology, fast-response and production etc. as an entrepreneur if you’re able to produce at a lower cost and sell cheaper, this will increase the market share of your business.
The advent of globalization, has given buyers/clients a huge array of choices in the market and this influences their behaviors: there is an increased want to get goods and services quickly, in a more efficient way than before. In addition to this, they expect high quality and low prices. All these expectations should be attended to, by you as an entrepreneur, otherwise your sales/clients will decrease and at the same time your business will lose profit and its position in the market. As an entrepreneur, you should always be ready for challenges in price, product/ service and customer preferences because all of these are the requirements of the global market.
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