Every generation has its own set of challenges that must be faced. Businesses have had to adjust to the creation of the printing press just like they had to adjust to radio, television, depressions, and recessions. Each generation is different in what it brings forth and without an awareness of the challenges that a business will face, they will struggle to survive.
It is important to understand what businesses struggle with in order to understand which businesses to avoid in investments or employment. Knowing what companies need could also reveal a service for your own business. This will serve as a quick review of some of the well-known and lesser-known problems businesses are facing in this day and age.
Here are the top four biggest threats to businesses today:
1 – Technology
The effects of advancements in technology have been felt in every part of our lives. Many of the challenges that are now facing businesses are a product – directly or indirectly – of technology. Businesses need to take into account how current technology and its potential advancements impact their bottom line.
One of the biggest dangers a business faces is in believing that they are invincible to these forces. Technology can impact the way your company is attacked and it can cut into your market share. Because of technology, the way people do things is changing dramatically and if businesses do not account for that, they will be exposed.
There are an array of considerations to take into account with this. Among other things, technology can improve a company’s relationships with its customers and employees, increase efficiencies within the business, and open doors to new directions for the business as a whole. On the other hand, if the technology is used inappropriately, it could have equally negative impacts slowing things down and fracturing relationships.
2 – Globalization
Each business is now competing in every market in the world. This, again, is a product of technology but has also become a point for concern in and of itself. It is easier than ever to send work overseas, find products from other parts of the world, and communicate with potential partners in other countries. This all creates new challenges for businesses.
Due to international laws, a company may be limited in what they can do about some of these challenges, but that only means they need to be more creative in how they combat them. For example, if your company’s product or service can be outsourced overseas at a much lower cost, you need to think about another way to make yourself more appealing at a higher price point. This is a challenge in a cost obsessed environment, but not impossible.
3 – The Shifting Face of Labor
This is also influenced by the development of technology but is much more a matter of people. Job seekers are becoming more and more able to find work they can perform from the comfort of their own home. Not only that, but the most youthful members of the labor force spent their entire lives in a world of massive connectivity.
If a company does not adjust to the needs and demands of the new labor market, they can expect potential employees will seek work elsewhere.
4 – The Speed of Change
Throughout the entirety of the industrial revolution, changes were happening in the world that businesses needed to adjust to. What makes today different is that changes are happening faster and on a much larger scale than they have ever occurred before. This means that a business could make a shift in strategy today that is a good decision but in a short time, they may need to shift away from that strategy.
The level of flexibility that companies need is something quite new. While it is important to display a level of consistency so that consumers know what to expect, if a company allows that consistency to turn into stubborn continuity, there will be a price to pay.
These are only a few of the challenges that businesses face in the world today. There are, of course, many others just as there are new ones right around the corner. In today’s fast-paced, globally-connected world, business executives need to be as vigilant as ever if they hope to be prepared to handle these challenges.