The Effect of Global Market on Entrepreneurship
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Petuum is a startup that was launched in the year 2016 with its current reaches now going across the country and beyond. The startup has had a great growth potential with its projections showing that it seeks to dominate the global markets in the near future. Petuum has managed to raise adequate resources with its whole operational area falling at early stage startups working in artificial intelligence and machine learning field. Petuum’s mission is ‘achieve the impossible’ that has guided its operations and goals and therefore making it grow steadily. The management at Petuum has been an effective force guiding the firm in its growth strategies that are hooked on the local and international markets. Petuum is being driven by the great potential the international markets have to offer in terms of AI as a fast-growing field already estimated to be worth billions of dollars in revenue under Forbes. Petuum has grown to cover vital market and its already thinking of going lobal in its strategic growth model that will expose to stiffer competition and vibrant growth. Petuum is dedicated to helping in the harnessing any data- tabular, unstructured, semi-structured, images, video, audio, streaming to implement practical AI solutions.
The world today is greatly shifting and becoming a unified market through globalization of trade. One f the key drivers of this shift to globalization is the ease in transport, communication, and technology in internet and sharing of ideas (Cavusgil et al., 2015). The ease of movement of goods and services has allowed companies located in far edges of the earth to trade with almost every country globally. The ease of doing business globally has ushered in a new dimension of entrepreneurship where startups now have to think globally as they are victims of the global markets. The broad effect of this is that the competition that startup companies face today do not only come from their local markets but from a global area. Therefore, the increased competition and rivalry from the global firms is therefore one of the key effects that startups have to deal with on a daily basis (Alvedalen & Boschma, 2017). The other effect comes through the decision-making process where the management in theses startups have to think globally and make decisions that reflect the global business environment.
Petuum as a startup firm with great potential is a victim of the globalization forces that have griped and intensified over the past ten years. The major effect of the global markets on Petuum is that the firm’s management is forced to think globally in its growth agenda as it faces not only local but even international competition (Cavusgil et al., 2015). On a positive side, the exposure to global thinking will boost Petuum’s diversity in decision making and market searching. The exposure to the external market will therefore boost the management at Petuum to think critically and broadly in trying to put up with the global competition. The global marks tar therefore not only a hindrance to growth but a platform to launch the a strategic and diverse thrive that a startup need (Nambisan et al., 2018). Global market is more competitive than the local ones and this forces startup firms to think broadly to counter the rivalry from global firms. One of the positive effects of this is that firms that operate in the global markets have a lot to learn and diversify their operations to put up with this increased competition. Consequently, the firms get a chance to grow and attain great potential (Burns, 2016). On a positive note, Petuum will benefit for this coemption as it is exposed to international coemption and this will offer the management an opportunity to think critically.
On the area of decision making, Petuum will be forced to operate under extensive and deeply thought decision that align with the global markets. The local environment varies from the international one and this is a key aspect of what and how firms makes decisions (Alvedalen & Boschma, 2017). Petuum in its global pursuit to keep up with the international competition will face the same effect that will demand critical and mature decision making. The management at Petuum will have to generate ideas that will match up with the international environment. This draws down even to the marketing decision that has to be done in line with the existing global environment. The marketing team at Petuum will have to realize that it does not only face the local but international marketing competition. The decisions made will therefore have to reflect what the international markets offers and therefore align with what the global customer want in terms of quality (Cavusgil et al., 2015).
Over the years, entrepreneurship has changed as a result of globalization. More startups are coming up and operating at a global level that puts them strategically at the center of this global competition (Burns, 2016). The ability to throve in this entrepreneurship business demands that the startups like Petuum to make decisions and apply all the growth intensive ideas. Petuum in its search for global presence and position in the entrepreneurship business has little options other than to make decisions that align with that the global market demand. The decisions made will range from marketing, operational framework, supply, and customer relations (Nambisan et al., 2018). The management has to make sure it makes the right decisions that match what the global market demand in order to make Petuum remain relevant and competitive.
Petuum also faces acute changes when trying to integrate its operational model to match that of the global arena in innovation business. Through the five years of operation, Petuum has managed to diversify and link its operational framework to respond to the global demand and competition (Burns, 2016). However, the management has be ushed to the extreme in trying to build an all-inclusive and global responsive operational model in its bid to feed the global markets. This shows that global markets and internationalization has a direct negative effect on startups that try to thrive in the competitive world. The stiff competition and demand in the global market is sometimes harmful to stratus that are pushed to the limit in trying to standup to bigger companies (Nambisan et al., 2018). Startups have little experience and thus exposing them to the global market may harm their growth as they are pushed to the wall in trying to match the bigger companies and stand the still competition.
The field of entrepreneurship has had its positive and negative side due to the exposure to global market. Startups have benefited from this aspect of globalization enabling them to grow to great heights. On a negative outlook, international markets have been harmful to startups as they are exposed to huge competition that makes them pull out of business. The exposure to global market is not only harmful to the startups but can be a major opportunity to boost their operations (Alvedalen & Boschma, 2017). As seen in the case of innovation startups, the international markets can boost their growth by outing them in frontline in the global competition. The whole idea of going global is beneficial as it boosts the way the startups face the market, make decisions, and compote both locally and internationally.
References
Alvedalen, J., & Boschma, R. (2017). A critical review of entrepreneurial ecosystems research: Towards a future research agenda. European Planning Studies, 25(6), 887-903.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3-16.
Nambisan, S., Siegel, D., & Kenney, M. (2018). On open innovation, platforms, and entrepreneurship. Strategic Entrepreneurship Journal, 12(3), 354-368.
