The Global Market – Today’s Business World is Shrinking

There is no doubt that all businesses now operate in a global market place and there is no avoiding it. Recent events in the USA have served to highlight how connected and interconnected we really are. Developments in transport and communication now make it possible to conduct business on more than one continent as well as maintaining a presence in the United Kingdom.

The development of technology has enabled and facilitates the global market place. In essence technology has aided the development of alliances and partnerships throughout the world. In reality there is no reason why someone half the way around the world should not be interested in your services or products. Whilst it is understandable that many SMEs face numerous barriers and obstacles in their home markets, they should not limit their thinking and development by dismissing the opportunities presented by global markets.

Advantages

Transcending global barriers offers the opportunity for businesses to benefit ethically from inexpensive workforces and cheap raw materials. Having more global options allows SMEs increased flexibility in the market. This in turn translates into increased growth potential. Using global resources to grow a company by reducing cost and turnover is a tried and tested method. There is no reason why SMEs cannot utilise this method to increase their profitability.

Disadvantages

One of the more prolific disadvantages to having a shared global economy relates to the transportation of resources and the impact on the environment. Reliance on internationally sourced products highlights the requirement for adherence to environmental policies that benefit the environment. Increasingly all businesses will need an environmental policy whether they trade internationally or not.

Innovation

Globalisation has created increased capacity for innovation. As such it has become a necessity for all businesses to keep one eye on globalisation. Each day a wealth of business prospects materialise. Your competitor is no longer restricted to local or national businesses. Innovation, entrepreneurialism and determination are just a few of the skills which will be required for a global market.

Big sporting events such as the World Cup of the Olympics bring with them a wealth of opportunities as well as an abundance of competition. No matter where in the world events are held they will require some core services.

Where to next

There is no reason why a small business cannot team up with a larger business to provide services to a larger company. The supply chain has in some ways become more flexible. The next time you are looking for new business why not consider expanding outside of the United Kingdom. The grass may well be greener on the other side of the fence.