We have entered a new industrial era, where the old ways of doing business are unrecognizable. Traditional industries have grown more connected and global.

The global economy has become more fragmented and competition more intense.

These changes have accelerated over the last two decades, particularly since the onset of the Great Recession in 2008.

We’ve seen the rise of new digital platforms and new algorithmic solutions to old problems. These changes have transformed how businesses grow their business and how they compete.

But they have also made it almost impossible for some businesses to compete.

The same has occurred in clothing and footwear manufacturing and many other industries. That’s because global players have been able to respond more quickly and have invested in new technologies that are beyond the capability of smaller companies.

Read on to discover why you should already be planning your exit strategy and where you can take your company in 2022.

The New Rules of Growth

One of the things that have contributed to the decline of traditional industries is the growth of the service sector. The rise of e.g. Amazon and other online retailers has made the old business model of selling goods harder to scale. With digital transformation and more competition, selling products as a service is becoming more common. So has-based businesses are being replaced by software-based ones.

These businesses have different characteristics and require different skills. For example, software companies are more likely to hire engineers who can develop apps rather than people who can design traditional products.

How Globalization Has shaped the future of business

The drivers of change in business, both positive and negative, are globalization and automation.

Automation, in particular, has made previously manual processes as efficient as possible. This has created new competition and sped up the pace of innovation.

The Internet has been especially revolutionary in this regard. It has made many old business models obsolete, replacing them with new business models, which are often based on e.g. big data or artificial intelligence.

Can you compete in an era of inclusive growth?

In many ways, the future of business is looking more like the past. It’s more important than ever before to have a strategy to take your company to the next level.

Many sectors, such as retail and health care, are seeing a return to basics because the requirements of customers have changed. These sectors are being replaced by digital platforms where customers can shop, find products and services, and purchase goods and services that meet their needs and expectations.

In other sectors, e.g. education, the change is more dramatic. Globalization has stimulated the economies of many countries, creating opportunities for British education systems to partner with Brazilian education systems. This change has been especially dramatic in Europe, which used to pretty much ignore Brazil’s attempts at integration.

What are the new rules of business?

These are changes that have taken place in business over the past decade and are set to continue.

Automation of production processes: Automation, in particular, has made previously manual processes as efficient as possible. This has created new competition and sped up the pace of innovation.

The Internet has been especially revolutionary in this regard. It has made many old business models obsolete, replacing them with new business models, which are often based on e.g. big data or artificial intelligence.

New business models based on artificial intelligence: New business models based on artificial intelligence are changing the face of business. They are increasing competition by putting the decision-making power in the hands of computers and robots instead of people.

New business models based on big data: Big data is created when computers analyze vast amounts of data to create insight and knowledge. It is reshaping many industries and creating new business models based on big data.

New business models based on innovation: Even though these trends are challenging the way business is done, innovation remains a strong force in business. Startups can still succeed if they have a business model that allows them to profit from innovations in tech, business, or lifestyle.

New business models based on virtual or eCommerce platforms: Virtual or e-commerce platforms are changing the way people shop. They are displacing physical stores, improving product selection, and enabling customers to find goods and services that suit their needs and preferences.

New business models based on social media: Social media is still a player in the business, though it has seen a rapid decline in the success of startups in comparison with its early successes.

How to Take Your Company to the Next Level

Sales and marketing

Sales have become more challenging as companies have found new ways to respond to customers’ demands. Companies are now finding creative ways to meet these demands through channels other than through expensive traditional advertising campaigns.

Some companies are even trying out new business models based on social media or online auctions.

Marketing is another area that is being transformed. It used to be that marketers’ job was to try to sell products to as many people as possible. But in the new marketing world, marketers can focus more on providing customers with valuable services.

Technology and business development

New business models are often based on new technologies. This can be a good thing or a bad thing depending on how well the technology works and how quickly the industry needs to adopt it.

New business models often use new technologies to their advantage by using them to displace an old business model and create new opportunities. For example, the ride-sharing industry is displacing the necessity for traditional car ownership.

Automation and new business models are also often based on new business development strategies. Startups can use new business development strategies to enter new industries and reach new customers.

Bottom Line

Businesses are facing increasingly complex challenges in terms of both competition and growth. To compete in this new environment, businesses must have strategies to respond more quickly and effectively to change.