Do multinational corporations destroy or enhance local businesses?
Multinational corporations are the money shredding companies that make the world go round. They are interconnected in a way few understand and no matter how many people criticise them and their traits these corporations are unlikely to go out of business and for a good reason; people buy into these companies because they are trustworthy and familiar. I asked 100 people if they would choose a well-known brand over an unfamiliar brand and 67% said they would rather spend their money on something they trust than something new which is extremely logical. If one is going out to get a coffee, they would rather spend more money on something they know they will like and will do the required job, than waste money on a new drink that they could potentially hate.
Popular brands have a consistent income from all over the world supporting them in setting up more venues bringing in more customers and more money – the aim for any organisation. However, this common mindset drains potential customers from local businesses when multinational corporations expand their stores without a second thought. For example, a new Starbucks recently opened on Sydenham high street to the excitement of many and the disappointment of others. Just one international store can put many more local ones out of business without a second thought.
On the other hand, these companies always do what they do best, attract customers. A new exciting opening ensures a stream of civilians afraid to miss out or simply looking to explore. This can be extremely positive and lead people to these new businesses generating new customers and more popularity enhancing the stores that would not have gotten attention otherwise. In this politically aware decade as many wants to defy big brands as they want to buy into them leaving a positive effect on local businesses and the multinational organisations.
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