By Elizabeth Omol

The global marketplace is plagued with fast-paced moving trends, technology and evolving consumer requirements that can at times be overwhelming to businesses. Keeping up with consistent changes requires a business to be able to make quick decisions, update systems, and continuously ensure they are trained and skilled to navigate the evolution.

To this end, a business needs to ensure that they are agile and adaptable in order to maintain longevity in the market. The age of technology has enabled willing business owners to harness the knowledge and access gained from technological resources to level up their business operations and accelerate business growth. This has given access to a wider customer base, data insights, marketing opportunities and strategic networks, funding opportunities, and opportunities to learn and train which has increased the competitiveness of such businesses. On the other hand, businesses also experience the financial burden of having to keep up to date with the ever-changing trends and changes, which can lead to stagnation, particularly where businesses may not have the financial resources to invest in every new technological trend.

Nevertheless, businesses can leverage existing technology as a resource to enhance the competitiveness of their business. This article will briefly explore how a business can expand and gain access to global markets by embracing the use of technology.

TRADITIONAL APPROACH

The traditional approach to business limits the scope of competitiveness of a business. Depending on the nature of the business, business strategies encouraged a physical location/office, fixed working hours with employees, and traditional marketing such as targeted physical adverts, which would limit the customer base to a geographical location. Aside from internal limitations, external factors such as the ease of business in a country or access to the country also limit the ability of a business to grow beyond a certain point.

However, with the coming of the internet, we have had more access to markets that had been previously closed up. Countries and governments have become more open and accessible by embracing technology systems in a bid to increase economic growth. This in turn has led to access to more markets and increased opportunities for growth and customers. Businesses are no longer limited to localized markets.

CROSS-BORDER OPERATIONS

With access to the technological advances available from the internet, businesses have access to global markets. Businesses are no longer limited by geographical scope to the country of establishment. It is possible to set up a business in a different jurisdiction to gain a competitive advantage. More and more companies are engaging in cross-border operations in a bid to access new markets without incurring operation costs.

Cross border, operations can take form in different ways. It can be in the form of a corporate structure with a company setting up a holding company in one jurisdiction and setting up subsidiaries in other countries. It can take the form of a partnership where rather than setting up a subsidiary in another country, a business can identify an already established local business to collaborate with and run their operations through the partnership. Whichever structure a business chooses it is important to engage in cross-border operations strategically. The key concern for a business looking to expand globally would be how to gain access to markets without incurring exorbitant costs.

Latest technology advances such as ERP systems (Enterprise Resource Planning) a type of business management software, virtual communication/meeting tools, decentralized virtual office support and management structures, AI-driven processes and decision-making tools, including many other useful technology applications which are not only useful but often business enablers for particular globalized business operations supporting sophisticated business models and international transactions seamlessly.

Quick and efficient business processes, decision-making tools and AI-supported business and corporate strategies do not only detect beneficial investment and business opportunities much quicker than common business processes but also substantially assist in implementing successfully relevant business strategies and investments with lesser error rates and higher cost savings.

Well-designed corporate structures specifically for globalized operations and business setups can only be successful in nowadays highly competitive world if those cross-border business models are heavily supported by and leverage effective technology tools and AI-supported applications and systems to gain or maintain a competitive edge over other competitors and new markets entrants

As mentioned above, there are various corporate structures that a business could consider that would benefit their growth plan strategically and save on setting up costs. The pandemic proved that businesses could continue to operate efficiently if they adapt to the use of technology.  Latest state-of-the-art technology has enabled faster communication across borders; we can now communicate across countries without having to meet physically. Employees can be recruited to work remotely which means you can still run an office without incurring the costs of running a physical office. Furthermore, more communication options allow businesses to have wider access to a larger customer base. Businesses can now use digital marketing solutions to attract clientele as opposed to waiting for customers to engage through physical contact.

In addition, there are innovative solutions that can help with the administration such as task administration, record keeping and book-keeping that do not require paper and enable the business to run from anywhere in the world.

CONCLUSION

Technology is nowadays a key resource and pillar for a business to seize opportunities. Technology has given businesses more access to global markets, which has shattered the limitations of running a traditional business. Businesses that have adapted to technology have taken the opportunity to expand markets beyond their borders, which has led to their exponential growth. As the world becomes more accessible through technology, local businesses that resist the use of technology will struggle to compete with foreign businesses that have leveraged technology to compete at a global level.

Ms Omol is the Head of Pannike+Partners, Nairobi Office. She can be reached through Mobile: +254719188319 Email: e.omol@pannike-partners.com / g.pannike@pannike-partners.com Website: https://pannike-partners.com/