We often hear that companies are bouncing back and doing well or that they have entered the Global 500 brand ranking league table. But what does this really mean? Why should we care if a business thrives or not?
Business Opportunities
The first level of opportunity when a company does well benefits those within the company themselves. Success results in greater profitability, which increases the brand’s standing and opens the brand up to more investment, more partnerships, and more custom. For example, the city of York benefitted from the development of the Rowntree’s Factory in 1862. The success of the factory led to the creation of a small housing development for its workers, the model village of New Earswick, which helped the city thrive as these workers then helped the local economy.
As brands succeed, they are able to expand and create more jobs. The more money a company makes, the more likely they are to experiment in their field, too, with products, business models, or new technology. For instance, Red Bull began solely selling energy drinks. Thanks to its success here, they segued into creating additional content in the form of TV, radio, and magazines.
Competitor Opportunities
If a competitor ends up doing well, this also reflects positively on us. For instance, if a competitor in a niche field begins to gain global acclaim, then the niche field is propelled into the public eye. Investors who want to replicate the success of the first company may look to smaller competitors who could scale upwards.
Entire industries are born from the success of just one company. For instance, Deliveroo pioneered the fleet of takeaway deliverers, which was replicated by many others. Netflix also arguably put streaming on the map. In doing so, they changed consumer habits and shaped trends, which enabled other streaming services to gain popularity and succeed themselves.
Civilian Opportunities
But if you’re not directly or indirectly related to the company, why should you care if they succeed or not? Well, thanks to a range of online platforms and modifications to the stock market, regular people are able to get involved with trading in a way that was far more difficult before. The Game Stop stock market fiasco in the USA shows that people are beginning to dip their toe into trading and that it could actually impact the financial landscape.
This is possible through the range of platforms and wealth of information that makes trading so accessible. For instance, 1Market offers the opportunity to trade stocks of the world’s largest companies from Amazon to Apple and Tesla. This can be done on the platform while also tapping into information on how to trade best and the previous stock history of many of the most traded stocks.
While in some cases a business’s success benefits a select few, in others it breaks open new industries and allows many people throughout the hierarchy of the business to benefit. Some business success results in a rising tide that lifts all boats and even allows those not connected in any way to the business or industry to thrive.
