The disvantage and advantage of globalization
“Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade.” (Globalization, 2010). Nowadays, small business has to compete against multinational companies face to face as globalization becomes an irreversible momentum. In some case, small business have no need to against the large companies because they focus on different scale until the small companies grow up. However, I agree that small business in IT industries cannot compete against multinational companies when small companies become threats to the lager ones. In this essay, I will explain why small business still exist today and compare their advantages to multinational companies in the sector of financial strengths and productivity advantages.
Small business still exists now because they have unique features, especially they focus on the lower market. It is no need for them to compete against the multinational companies. Sometimes, they sever the specific communities. Such as they are willing to run their small business in some small villages and remote area where multinational firms do not pay attention to. McClave, K. (2002) argued that small business have to overcome these rules: “…information technology (IT) priorities crowd out product development initiatives…” It is clearly that overcoming these sales abstract is difficult but not impossible. Small business has its own advantages because it can use convenient and easy solutions to common business problems. However, low price is the most popular strategy for small business to make profits and attract customers’ attention. Small business spends less money on advanced invention. Comparing Dell Company mentioned by McClave (2002) that if they want to enlarge their popularity they have prepackaged solutions to meet unique buyer’s need. They set up specific system to solve these problems to keep in touch with their customers. As a
Small business still exists now because they have unique features, especially they focus on the lower market. It is no need for them to compete against the multinational companies. Sometimes, they sever the specific communities. Such as they are willing to run their small business in some small villages and remote area where multinational firms do not pay attention to. McClave, K. (2002) argued that small business have to overcome these rules: “…information technology (IT) priorities crowd out product development initiatives…” It is clearly that overcoming these sales abstract is difficult but not impossible. Small business has its own advantages because it can use convenient and easy solutions to common business problems. However, low price is the most popular strategy for small business to make profits and attract customers’ attention. Small business spends less money on advanced invention. Comparing Dell Company mentioned by McClave (2002) that if they want to enlarge their popularity they have prepackaged solutions to meet unique buyer’s need. They set up specific system to solve these problems to keep in touch with their customers. As a
Bibliography: ⒈ Wikimedia Encyclopedia. 22/11/10 Globalization http://en.wikipedia.org/wiki/Globalization viewed 23/11/10 ⒉ McClave, K. (2002) Small business: Product solutions that create competitive advantage. Commercial Lending Review, 17(4), 5-13. ⒊ Girma, S., & Görg, H. (2007). Multinationals’ productivity advantage: Scale or technology?. Economic Inquiry. 45(2), 350-362. ⒋ Preston, R. (2010). The world’s most “strategic” IT Vendors, Information Week, Iss.1258, 56.