Small businesses are disappearing and being replaced by large multinational companies. Do the advantages of this outweigh the disadvantages?

It is a common observation nowadays that
smaller scale
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smaller-scale
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companies are vanishing and large business corporates are taking their place swiftly.Of course, the reasons for
this
situation are multifactorial but as far as the vast number of advantages are concerned, I think that they are being masked behind even larger disadvantages. Down here both pros and cons of the current scenario will be discussed
along with
how flaws prevail more than benefits. The first and foremost drawback is that
presence
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the presence
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of already stable bigger tycoons in the industry is making the smaller industry lose its competitiveness and is being compelled to lag behind them.
Additionally
, the products of the settled company are bound to become a success because of the better marketing strategy and advertisement,
while
local businesses would obviously not have
such
an enormous budget to do so.To illustrate,
Mcdonald's
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McDonald's
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a renowned international food chain is always preferred
due to
its big name no matter how
better
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well
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a local business is performing.
Hence
, failure could become the fate of the community that wants to become successful in the presence of a larger name.
Moreover
, the brands are never
cost effective
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cost-effective
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at all which surely is not fine with the population having average financial conditions.
On the other hand
, if the benefits of
this
process of larger companies engulfing the smaller ones are considered,the availability of good quality products with ease would become common and accessible.
Secondly
, multinational associations having exceptionally huge incomes are more vital to the economy of a country.
For instance
, Unilever company has a profit of more than the combined profit of four to five local brands here in Pakistan.
Therefore
, rightfully owned importance must be enjoyed by
the
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apply
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global brands.
To conclude
, even if there are positives of the increased number of large businesses merging smaller ones into them in terms of
economical
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economic
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and quality benefits, I still believe that there must be opportunities provided
to
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for
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the
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apply
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local companies to flourish so that people who are unable to purchase costly products can manage to buy cheaper ones and more and more people dare to join the industry with less fear of loss.
Submitted by Sidraainali on

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Topic Vocabulary:
  • Displacement
  • Economies of scale
  • Local economies
  • Standardization
  • Cultural homogenization
  • Personalized service
  • Innovation
  • Community investments
  • Environmental impact
  • Competitive prices
  • Tax contributions
  • Job losses
  • Cultural diversity
  • Local employment opportunities
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