In an ever-increasing globalised market it is important to remain competitive. Small businesses are facing immense competition at varying degrees. Seeing the market at a global stage offers opportunities and challenges. How each small business handles it, is what sets them apart from their competitors.
Small businesses are constantly competing with their existing rivals in the market. Additionally, they compete with foreign firms operating in their domestic market which adds pressure and has the potential to erode profit margins. One way to overcome the challenges posed by globalisation is to look at the option of growing the business beyond the domestic market. This can be done by conducting research and monitoring changing trends in order to gain a better insight.
Where do we start and how do we monitor the changing trends and developments? Well, as a small business owner you already know what is happening in your industry by just operating in it. We want to take this further by gaining insight as to what to expect and how to steer your business activities in order to remain sustainable.
In a globalised market it is important to remain competitive
Utilising marketing’s well recognised situational analysis tool can provide you with specific areas to be examined. Then you can consider every element of the business environment and the influence it might have on the business.
So start by looking at the industry and the market from three distinct levels (diagram below) and identify opportunities and challenges likely to have an impact on your business, then consider what measures need to be put in place to accommodate these changes.
MACRO ENVIRONMENT MICRO ENVIRONMENT INTERNAL ENVIRONMENT
political partners the organisation, its people
social and cultural competitors and processes, including all its
legal the industry departments
Once you have identified the opportunities, start looking at them in more detail and see if your business has the resource capability to carry this out. In other words, start ranking the opportunities that you have identified with some key measurement tools that are relevant to your business and assess its viability. This will highlight at least one or two opportunities that your small business can utilise.
When you know what these are, start gathering more information and incorporate the findings within your marketing plan ready for implementation.
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