The Global Financial and Commercial Economy
Implications of divergence in investment strategy
After the rescue of investment banks worldwide we now find ourselves at the stage where financial managers get big bonuses while producers of goods and services are faced with insufficient funds to grow their businesses.
Within this global reality commercial businesses need to grow by consolidating and expanding on existing markets while simultaneously innovating to create new products.
Both market expansion and product innovation require capital investment. The challenge is in how the profits of investment banks and bankers can be channelled into fresh investment in the commercial sector.
Can commercial and mercantile banks play an effective role or will producers of commercial products and services have to tap into new business models that are less capital intensive?
One effective way to grow markets is to use the internet to reach out to existing and new markets.
As for innovation the ability to obtain instant feedback from customers and prospects through an internet presence can help create a more flexible product innovation strategy.
Siddha ParamInternational Business Consultant
Winnipeg, Manitoba, Canada, North America
Worldwide Business Connection.com
