The three major challenges faced by businesses today are globalization, advances in technology, and deregulation. • Which of these affords the greatest opportunity for established businesses? • Which affords the greatest opportunities for new businesses? Why? Each of these challenges has advantages and disadvantages for all businesses whether they are new or existing. The effect that these challenges has on a company doesn’t solely depend on whether they are new or existing but also what industry they are in, the product they marketing, the existing market etc. The effect will vary for different industries and businesses. I feel that for established businesses, the best opportunity is advances in technology. Established businesses should have the resources to keep up-to-date and upgrade their systems, even create new products that keep up with the changes in customer demands. We can look at companies such as Xerox and even Nokia. Established companies can also use advances in technology, to improve the distribution, target market, marketing channels, communication to maintain their business, however globalisation also plays a large part for established businesses. While established businesses can use technology to establish their product in the global market, globalisation allows businesses to have local HQ’s that deal with the local market directly, have a greater field of employment, outsourcing can reduce costs such as labour costs and transport costs (although outsourcing as received negative publicity with companies such as Nike and Apple). Globalisation also means that for companies that have been affected by deregulation have the opportunities to compete in other countries to expand their consumer market. Deregulation has its disadvantages for established companies as now new companies can compete in markets that they couldn’t initially. New companies can now challenge companies that may have old business and marketing models and aren’t used to...
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