The recent two decades have proven to be one of the rather significant development periods in commerce. Innovations such as the World Wide Web, eCommerce, and electronic innovations in hardware as well as software, combined with geo-political concept duplication and development such as the European Union, the fall of the Soviet Union, and conflict in the Middle East, have all contributed to a new dawn in commercial thinking and applications.
Essentially the global competition is based on the availability of even minor players, such as local producers, to interact and offer services and products to potential buyers. The opportunity of participation has created a more competitive environment in which virtually all those participants, regardless of their size, may receive equal access to markets that otherwise would be reserved for those industry giants with extensive budgets and connections.
Yet there may also be disadvantages to such global competition because of locally available resources at a lower cost which may skew domestic competition. But equally, it may offer the competitors a plainer field. It is not to say that individual and specific situations may illustrate stronger arguments for and against global competition; however, the widening of possible accessible markets, in combination with an increased quantity of diversified vendors, makes for a strong positive argument for global competition.
The most obvious flaw in assuming that global competition is only beneficial to lead competitors is within the argument itself – it is not logical to assume that leading competitors are the most suited vendors for all situations and markets. Global competition creates inherent additional factors that have to be taken into consideration. Those factors include local and national legal considerations, social and cultural settings, language issues, economic and national interests, and the geopolitical and geo-financial impact of the leading vendors compared to alternative and even smaller, less-known vendors.
Ultimately, it is vital to consider global competition as the natural evolution of commerce-related intergovernmental and non-governmental organizations. Like in any other field, including medicine, telecommunication, and politics, commerce has been evolving to include untouched potential markets in terms of service, product providers, and buyers. Hence, global competition should be considered a benefit to all participants, whereby individual situations, cases, and political and national interests may challenge the benefits in specific cases.
Brought to you by World Consulting Group — Your premier management consulting firm.