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Monday, May 23, 2016

How Globalization Impacts Our Local Businesses

Globalization impacts everything around it. No business can save itself from globalization. Local markets are heavily influenced by the market forces of change. There is nothing that can be done to save it or change it. The only thing a small business can do is adjust and change their strategy as their market changes. A few strategies seem to work the best.

Companies can either seek to adjust by becoming more competitive through changing their internal structure of find additional value with their current offerings. The strategies the business chooses depends on their model and personal strengths. Sometimes they can do both!

Internal Structure: Investing in operations can help companies function better and become more profitable. Sometimes it is best to adjust the structure to ensure maximum flexibility and innovation while other times it is possible to streamline the operation so that it will become cheaper. Small companies may want to focus on improving their adaptability and responsiveness to the market.

Finding Value: It is sometimes beneficial to move into a niche market, raise warranties, enhance services, improve customer service, or change the nature of the products.  Being local has its advantages in creating higher levels of local value through being more connected to local needs. Narrow the focus but improve the value proposition can be helpful.

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