We are now living in a world of globalisation. Businesses have ceased to develop their commerce inwards and started to embrace the new trend of internationalisation. After all, the more consumers you are able to reach, the higher chances of attracting better sales. On the contrary, does this mean that there is no advantage for localised business anymore? We will find out.
In order to keep up with the changes in the business industry, small businesses and large organisations alike are moving towards creating their own international presence. On the other hand, there are some disadvantages and advantages of having a globalised market. And it will depend on the type of services or products your company are offering. It is, therefore, safe to assume that localised business still have some advantages.
Advantages of Localised Business:
Better Reputation – whether you are a start-up or a recognised business, it is a good strategy to aim for establishing a name locally first. Why? It is a faster approach in gaining clients due to accessibility and convenience.
Facility Growth – this comes in line with a good reputation of the business. It will be easier to expand your facilities since there are people who can testify for your products or services. When there are branches of your company locally, it is a good impression of your business in the market.
Good Communication – communication is essential in any endeavor. In business, when advertising is focused locally, there is a higher chance of having better communication with the members of your company and even with your people.
Amidst the advantages of a localised business, there are also a number of disadvantages it presents. Let us try to identify them as well.
Disadvantages of Localised Business:
Social Problems – centralising a business in a certain region may create industrial slums and unhealthy living conditions. Criminal activities arise and may cause bigger problems for the business.
Un-healthy Competition – when a business establishes another branch on a local region, there is a possibility of rivalry to occur. Competition might be good in the beginning, but it can turn a business upside-down in the long run.
As we can see, localised businesses have its advantages and disadvantages over globalization. In the end, it will be dependent on the company which approach will provide a satisfactory result.