The rise of internet commerce has abstracted away our idea of “local”. The reality is, digital commerce has reinforced the importance of local rather than reducing it. While a company may have global reach with their platform, if that platform is not tuned (from product offering to language translation to deal flow) they stand little chance of success.
It's important to realize the fundamental shift the internet has caused in the structure of business. Digital commerce allows the creation of goods and services with a marginal cost (the cost of producing one additional unit) approaching zero. This is a reality even for traditional brick & mortars, as the cost of sales for the goods or services they provide also gets pushed to zero by competitors. In either case, cost of goods sold (COGS) is STILL a non-zero number. Today's small businesses must focus on marginal profit to remain competitive in the marketplace by leveraging their inherent advantages.
The prior generation of entrepreneurs taught us the importance of producing a great product to drive sales. We see many young entrepreneurs today jumping in with a seemingly “great idea” and immediately start coding. The unfortunate reality, is the product they have created likely ignores the basic economic fundamentals of how business is conducted today. Frictionless commerce tempts us to offer our goods & services for free and add ever more features customers may or may not pay for. This strategy that may work for those with deep pockets, however, most businesses are unable to copy but must compete against in the real world.
How will you succeed?