By: Moksha Grover
Image credit: Liknoss
As technology and globalization are expanding, it is formulating a way for new markets to enter and prosper in the consumption economy, beyond rich, industrialized nations. The global economy in the 21st Century is fluctuating extensively, thus bringing new challenges for current and upcoming CEOs. With the introduction of covid pandemic and change in globalization and economy, the strategies used by most of the businesses earlier for successful operations have proved to be complicated and failed in the modern world. It is now important for all businesses to adapt to changes taking place in their environment and take steps accordingly. “To succeed in the long term, companies must compete effectively and outperform their rivals in a dynamic, and often turbulent environment” (Thompson, 1995, p. 1).
Today, the whole global economy is facing the competition between tech and non tech companies. As technology is upgrading and replacing almost all the fields of business, non tech companies are facing a hard time and an uncertain future. Since the covid pandemic, the competition between both these industries has increased significantly. The industry most affected is the non tech industry. It is therefore, critical for businesses to improvise certain strategies in order to function flexibly and improve strategies that don’t work.
There are many strategies that successful corporates are taking up for longer sustainability of their business. Some of the strategies are listed below:
- Internationalization of Business: Just with a click on mobile, we’re able to communicate with people living far away, we’re able to share our ideas and spread our talents worldwide through social media and various other platforms. So, why cant we use such profitable platforms for expansion of our business? In the modern world, it is very important for businesses to trade their products internationally for successful operations. Good quality products with low prices are quite attractive for American consumers. If you are a company, which is looking to increase its profits and lower your cost of production, you can buy materials at cheap prices from international markets and also have cheap labour from other countries like china. You can also set up manufacturing units in countries which provide low cost of production. Thus, internationalisation of business will not only assist you in competing with other businesses but will also help you to maximise your profits and enjoy long term benefits.
- Technological Impact on Businesses: Its quite astonishing to note the adverse changes in technology. We are living in a technology based society where we need the latest technology for almost everything be it buying or selling. So, business world needs to be updated with latest technology in order to ensure innovation in their businesses so as to sustain and flourish. It is very important for all the CEO’s and business students to demonstrate a deep understanding of technology and adopt the technology which is effective and gives you economic benefits. In the end, the business which gives high level of satisfaction to its consumers, is successful.So, businesses need to keep upgrading their technology for giving satisfaction to their consumers.
- Outcome and Input based Businesses: The 21st century does not focus much on input based businesses. Successful businesses in 21st century are mostly outcome based. It is very important for businesses who want to survive in 21st century to revolutionize their business models and to supply outcomes in such a way that it cuts across value chains.
- Ecosystem operating vs ruinous competition: The 21st Century encourages businesses working on collaboration rather than businesses entering destructive competitive environment. The lingua franca of a 21CE is non-homogenous “ecosystems”. These are complex specialized networks where employees, suppliers, providers and consumers collaborate to extend the ecosystem beyond the enterprise with one common motive – to weave together a positive customer experience.
- Personal Strategies: The last but not the least, it is very important for all the CEOs and business students to apply personal strategies in order to raise themselves in productive business environment. Here are some personal strategies that can help you to take your business to a next level: Increasing the speed of your business, embracing new technologies, adopting global thinking and investing in your business for a longer term.
In addition to this, it is very important for all the businesses to operate in such a way that it does not harm any of the species living on this planet or our environment and also have good CSR activities. People always get attracted and encourage those businesses which are contributing for the betterment of the society and the country as a whole.
There are many changes occurring in our society and our global economy. From all the predictions of great economists, the pace of these changes is likely to increase further. This article highlights five strategies that can help you grow your business further and help in sustaining your business in this dynamic environment.
 Anant Gupta, ‘5 characteristics of a successful 21st-century enterprise’, World Economic Forum (9th October,2015) < https://www.weforum.org/agenda/2015/10/5-characteristics-of-a-successful-21st-century-enterprise/> accessed 24th December,2021.