Globalisation in the business landscape
Globalisation has an interconnected nature of the world and economy. There is a shift from the industrial economy to a more digitalised and networked one. The impact of globalisation on organisations is very significant. The geographical border does not constrain markets and companies anymore as all of them form a worldwide network. Many collaborations took place between suppliers, competitors, and buyers due to the complex nature of the business international environment. Nowadays, the business world is based on alliances and joint ventures. Firms and corporations which adopt this networking strategy have many advantages including quick adaption to market changes and expansion or growth possibilities. Technological developments and trade liberalisation facilitated the growth of different organisations.
Advantages and disadvantages of globalisation
The exchange was once to a great extent restricted to cutting edge economies and their enormous global organisations. Today, an increasingly advanced type of globalisation has opened the entryway to small enterprises and new businesses. A huge number of little and medium-size ventures worldwide have become exporters by joining online business commercial centres, for example, eBay, Amazon, and Alibaba. Digitalisation enables companies to make cross-border exchanges of money, services, and goods through online platforms and therefore has a significant influence on globalisation. The advances in technology, communication, and transport facilitated businesses’ access to new markets. Because of this, various actors in the business sector face an increasing competition level. Moreover, the bargaining power of consumers grew with the smooth share of information across the globe and they have numerous options of products or services to choose from. They can also shape the brands’ image through online reviews or consumer-generated content.
What does it need to be taken into consideration?
Business people need to think about new initiatives and adopt new strategic business techniques. Nowadays companies are looking for competencies which cannot be copied. Relationship marketing is one of them and can constitute a sustainable competitive advantage. Collaborations between the internal and external stakeholders represent the interactive part of globalisation and a proactive approach to the challenging economic environment. Adopting a networking vision means competing effectively in the market. Cultural intelligence and emotional intelligence are very important aspects which influence the business strategy focused on strong alliances. They are essential in building and managing multi-cultural or global teams.
What shapes the future of the global business environment?
The Internet of Things (IoT) sensors increase the efficiency of shipping or transportation and contribute to a reduction in the costs of global trade with real-time shipments’ tracking. Artificial Intelligence is another disruptive technology which has the same effects on global trade through offering direction to trucks based on actual road conditions. Blockchain contributes to international transfers or e-commerce through cryptocurrencies which substitute PayPal or credit cards and minimise the transactions time.
As a conclusion, the technological advances in communication and information contribute to globalisation and influence significantly different markets’ environment, but there is a new innovative wave based on disruptive technologies which are shaping the business landscape, people’ s life and global economy. Those which embrace the emerging trend will have a distinct competitive advantage. This involves a lot of organisational challenges including the corporate culture, mission, vision, and values. Even though, it also implies sustainable growth ways through implementing better ways of identifying and satisfying customers’ needs. All of this can be done using innovative strategic decisions based on disruptive technologies.
For more articles visit LSB Blogs.
And you, what are you waiting for to discover the British capital?