With technological advancements in the 21st century, the market has been described as ‘explosive’ in nature. Small businesses are taking advantage of their ability to cause disruption, have independence of action, and be increasingly diversified to become big corporations, and in some instances, control the market space. These aspects allow them to exercise a given degree of advantage over other market players, which they leverage over time. However, this is not necessarily true. The quest to become more prominent, better, and faster in the field has resulted in occasional economic bubbles that bring about anxiety in any market. This increases the probability that corporations can move from positions of muscle to vulnerability and faintness. The question is, how does this happen?
Concern on market dominance in any sector has grown over the years, with some big corporations termed monopolies. This situation is due to control over the prices, production, supply, and distribution of more than one-half of the total goods of any description, all to stifle competition. The competition regulator in such markets establishes regulations to limit such power by capping the percentage mark for market share. This move is unpopular since it restricts the ability to innovate for fear of being declared dominant.
Consumers have not been left behind in shying away from markets that are controlled predominantly by big businesses. The general feeling is that their ability to choose is constrained by the market behavior to only favor one business entity on aspects such as quality and quantity of commodities. Consequently, they tend to react against the market leaders by turning away from what they offer, thus creating room for new entries in the market.
The political environment has not been any kinder to big businesses as each election year; they become a punching bag for political outfits who believe that they are ruining the moral fabric of the society. Calls to hold corporate leaders accountable for wrongdoing to concern about the corrosive influence of corporate money in the politics of culture have stained the ability of big businesses to become more prominent, with most legislation targeting their expansion capability.
The quest to become more prominent is no longer feasible. Corporations should angle their strategies towards becoming better in aspects such as serving customers and attracting investments. Focusing more resources on future opportunities rather than preserving past successes creates the cutting edge for small businesses to become big and remain relevant in a world that is hungry for new.
Paul Oreje | Columnist, IGBR. email@example.com