A More Informed Consumer Leads an Overhaul in the Size of Enterprises
Consumers are smarter than ever. In a world of absolute ‘inter-connectedness’ there is growing pressure among providers to adapt and reform the way they support their clientele.
There are several reasons why bigger may not necessarily be better in the current digital age.
‘Red-Tape’
With the world at your fingertips, the pressure to deliver in real-time is higher than ever. Any delay resulting from multi-layered bureaucratic decision making business models may result in the loss of market share to leaner and more agile solution providers. Due to the legal and operational structures of small and medium enterprises, decisions and changes take place almost instantly providing them a competitive advantage to the traditional multinational giants. A large ship on the ocean takes weeks to change course, and these new waters require rapid adaptive marketing strategies and adjustments.
Finger on the Pulse
In a buyers market, it is critical to understand the needs of the consumer and build a relationship with their brand and story. By ‘going small,’ enterprises are able to work at a grassroots level, predicting the shifts in the market prior to their occurrence. SME’s are part of the community and therefore are not required to wait for market research before witnessing change in consumer needs. Having a more consistent interface with the actual consumer allows you to keep your finger on the pulse of the market and anticipate the future steps when creating a marketing strategy.
Boutique Culture
In the face of abundance and an oversupply of choice, consumers are now opting for a more intimate, boutique-style experiences. This trend has translated into the digital world creating increased pressure for larger companies to ‘act small.’ Multinational organizations are attempting to forge ‘small company vibes’ by providing personal relationship managers to their clients placing a consistent face to their company for all transactions. However, this is inherently part of the SME structure, resulting in this new wave of demand for the more modest-sized organizations. Positioning themselves as a quaint, simple and effective solution for marketing needs, mid-size companies have established a boom in demand in the market.
A New Source of Talent Pool is Causing Waves
The consumer is not the only stakeholder benefiting from the access of information in the face of digital transformation. There is no longer pressure to source and recruit talent with extensive experience in global organizations. Companies are now able to source a broader range of talent, coming from all corners of the globe across a range of expertise. This has provided SME’s with the opportunity to source formidable team members at a fraction of the cost, once again allowing them to compete with the larger and more established providers. This has opened the doors to more sustainable recruitment practices and has leveled the playing field for the smaller and mid-sized organizations. Local and fresh talent is now as equally desired as the seasoned veterans of well-known multinational companies. Game changer.
Summary
There is no question that there has been a paradigm shift in the approach that consumers source their providers. Clearly, a need remains for experienced multi-national companies who have paved the way by establishing industry standards and introducing best practices through years of high turnover and successful practice. However, a new demand has emerged for mid-size companies to complement the mass market provision by supplementing niche services. These leaner and more agile organizations are able to react more quickly and create a personalized solution for clients allowing for ‘real-time’ strategic execution. Perhaps implementing a ‘beach-body’ lean organizational structure may be the way forward in the contemporary digital era.