Can small companies adapt more quickly to changes in the market place over large corporations? If not, why so?
Small and Large Companies adapting to changes in the market.
- Thread starter Joshua Farrell
- Start date
I think companies, big or small, need to adapt to changes in the business environment to survive and grow. It appears that smaller companies can adapt to changes more quickly due to less bureaucracy. But then again, that depends on the business structure and how well the company operates.
Small companies are more likely to adapt to changes in the market than large companies because their area of influence is small and can be controlled relatively fast. Large companies have to follow a lot of procedures to adjust and respond to changes slowly. A change in price of raw materials can be difficult for large companies to contain than small companies.
Whether it's a big business or a small one, one can not deny the fact that change is inevitable. And to stay in the competition, one has to keep updating themselves to the current changes. The demand changes with the changing socio economic conditions and with advancements in technology. So, the businesses also need to keep up the pace with it.
Everything depends on how good the management of the business is when it comes to running the business mostly towards the changes in the market because it doesn't really matter the size of the business but how efficient the management is.
The businesses that might be in demand and running successfully today might not do well when time changes. When we were growing up, cyber cafe or Internet cafe was a very popular and successful business. But then each household got its own computer and Internet access,. Cyber cafe slowly lost it's popularity and business. I remember one of my relatives running it. They slowly changed it into video game parlour and that's running successfully even now.
It is always good for company to adapt to market changes because that is what will enhance productivity.
This is one advantage that small businesses have over large businesses. They can adapt to changes quickly because that decision to change might lie in the hands of one or two people.
A larger organisation has too many people, departments and processes. Bringing any change there to adapt to the needs of the market can be challenging..It is easier for small businesses as the number of employees and processes involved are less. But when it comes to changes involving investment, bigger companies can do better as their profit margin is more.
There are some large companies with professional managers that can even adapt faster than small businesses. It is not about the size of the business. It is about the business acumen of the decision makers.
