Question

Can someone give me an example of 2 companies from the same industry a BIG one and a SMALL one and compare the contrast how are they different and the impact of globalization on small and big companies .Thank you

Answer 1

Talking globally, example of two companies of same industry but of different sizes can be taken from a car manufacturing industry.

From the car manufacturing industry the big name can be BMW and one small name can be Tata Motors. When we see on a level BMW has a big market and is considered as a well-known established car manufacturing where is Tata Motors on a global level is much smaller and has a strong identity nationally.

Talking about Tata Motors it is an Indian brand, and Indian people have a huge confidence towards it. Whereas BMW is internationally famous for its luxury and high end cars.

If a person from India has to buy a car they will probably decide it on the basis of whether they want an affordable and good quality car or whether they want a luxury car. And on these two bases then decide whether to go for Tata Motors or BMW. Tata Motors is manufactured locally will cost much less and BMW which is not manufactured locally completely will cost more, when it comes to the delivery of the car.

Effect of globalisation:

Globalisation has had both positive and negative effects on small and big Enterprises. For big enterprises it is a much of positive effect as compared to the small ones. For any industry who wants to go Global needs budget and big companies tend to have a bigger budget than small companies. Hence as globalisation came into place BMW started to spread its automobile to every country who are accepting globalisation where as per Tata Motors it is a little difficult to suppress the already established identity of BMW and go global. Also Tata Motors main concern is to capture the local market, hence as per their budget constraints also, they choose not to go global yet.

But also globalisation has brought many new big companies to the local markets of every countries , which in turn help to increase the competition and the local small business also grew with that competition.