Companies. Size does matter

Companies. Size does matter


The size of a company is important if it is to generate sufficient cashflows to make it competitive with suitable levels of profitability and productivity. Large companies are also stronger because they offer more employment stability.

The following points cover areas in which a larger company can be more effective.

  1. Creating alliances. It is easier to attract other companies which are seeking similar companies of the same size and with similar growth aspirations to work with. Together, these two entities can achieve greater profitability and gain a competitive advantage.
  1. Identifying and obtaining more customers. A broader and higher quality product portfolio of products or services can reach a wider variety of consumers. A large company also has the resources to guide its products to these new areas and so realize the full potential of this larger market.
  1. Greater market potential. Size helps when internationalizing production and attempting to reach more markets. A large company can more easily open new branches or create subsidiaries and so expand the area in which they operate.
  1. Access to emerging markets. It is easier to enter these growing international markets which can have great potential. Through this activity a company can source and attract many new customers.
  1. Increased training possibilities. Marketing, sales, technical and customer service departments can be improved making the overall team more competitive and qualified. Making training opportunities available also makes a company more attractive as a career option. And having a better informed and more skillful staff ensures a better customer experience. This makes it more likely that the customer will not only return but will also recommend products or services to other consumers.
  1. More effective marketing. Larger companies have more funds available to invest in this area and in advertising. An effective presence here can be a key in increasing productivity and sales.
  1. The ability to invest in new technologies. A greater investment capacity aligned with better trained and more savvy management and technical teams open up the possibilities in this area. This increases the scope of the company and offers more opportunities for growth.
  1. Outsourcing. This can improve efficiency while increasing revenues and market share. It requires savvy management and the intelligent use of intermediaries to fully realize this potential for business diversification.
  1. Positioning in a global market. A company can gain a competitive edge here as more customers think about its products and services and so associate quality and success with the company. The aspiration should be to make this the number one thing in the minds of consumers.
  1. Access to more information. This gives a company greater guarantees for increasing its capacity for growth. It also makes the market more confident in the company’s claims of its financial forecasts.
  1. Exporting possibilities. A company which exports is more successful as they are able to increase sales with greater access to customers and markets. It also reduces the risk of selling only to local buyers. At the same time, the company can become more competitive because it has more exposure to other areas of technology which can help improve production. Also, in a new market, a company can create a new image for itself.

For more information, please contact corporate law firm Argali Abogados.


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