Why Big Companies Need Smaller Companies

The traditional approaches that established corporations pursued to build a big clientele included opening of branches in different regions, hiring regional agents and sales representatives, forming an internal distribution department and visiting particular places on market days to sell directly to customers. These has been the organized structure of many corporations in the past decades. ideas to profit www.igrandbp.com With the onset of e-commerce, these structures are collapsing. Instead, distribution channels are becoming relational by-day. For instance, about eight out of ten people are more likely to purchase shoes from a friend who sells them through social media platforms than from an established shoe vendor. The same applies to every other product and services including purchase of used cars, insurance products, land, renting an apartment and choosing a holiday destination. In this review, we highlight that Companies will stop opening branches and invest more in building wider relationship networks by marrying smaller companies into their business model. One of the reasons why M-Pesa is a successful product is because Safaricom chose to get closer to its customers by working with M-Pesa agents who are small retailers running retail businesses in the estates, villages and small towns that we live and work in. Coca-Cola employed this approach by installing refrigerators all over the world. The onset of agency banking and huduma centers across the country are indicators that even banks and governments are re-thinking customer relationship management. In the reviewer’s opinion, small businesses have the relationship advantage given that most of them are family owned businesses with closer ties to people within the circles of family and friends. This is an advantage that Large Corporations lack. Therefore, most corporations will align themselves in the production line while small companies will compete to control distribution lines.

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