Gaining Competitive Edge in a Changing Business Environment

According to an ancient adage, change is the only thing that is permanent. It is just a question of speed that mainly set the various types of changes apart. The rate of change is particularly pronounced when it comes to online business. Those who are unable to adapt to the rapid changes are unlikely to survive.

Factors

There are many internal and external factors that affect the profitability of a business. Internal factors include the management of the business, capitalization, model of operation, technological infrastructure and quality of products. External factors, on the other hand, include macro and micro-economic forces, political situation, business rivals, market demographics, and technological innovations.

Businesses that are primarily operating online and getting their leads online are the most susceptible to the rapid changes in the business environment. Case in point: the latest updates of Google in its search algorithms have radically affected many web-based businesses. Some were forced to close shops while others had to re-invest significant sums of money to regain their online presence.

Being highly visible online and attracting the target market are the primary goals of any online business. These goals are only possible with extensive and comprehensive online marketing strategies. However, strategies need to be continually fine-tuned or even radically changed in consonance with the changes being made by search engines.

Surviving

In order for an online business to survive and thrive in the rapid changing business environment, it has first to adapt to the demands of search engines. It must first be able to comply with the requirements of the search engines’ algorithms. For instance, the Google Panda update has penalized low quality websites that have thin relevant content and have many advertisements. Over-optimized websites were also penalized.

Consequently, many online businesses had to redesign their websites by updating the content and restructuring the code infrastructure. This meant additional expenses for many online businesses, almost equivalent to starting from scratch. Business entities that have enough capital funds were able to comply immediately and regain their rankings.

Thriving

In most cases, changes in the business environment are unexpected and may have unintended consequences. Many of these changes are beyond the control of business entities but those that can find solutions and adapt are likely to be rewarded. Hiring the services of expert consultants is oftentimes necessary to make the necessary adjustments.

Adapting to the requirements of search engines is only a basic survival technique for an online business. Maintaining a loyal customer base and continually improving the quality of products are still the best strategy to have a thriving business online.

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