THE COVID-19 pandemic has had a significant impact on small and medium-sized enterprises (SMEs) in Malaysia. Many of these businesses were forced to innovate and adapt quickly in order to survive.
Some successfully diversified their products, embraced e-commerce, and found new ways to reach customers both locally and internationally.
These innovations may have a lasting impact and make businesses more resilient in the long run.
Going global and taking advantage of the situation requires a shift in mindset, revamping the business model, and repositioning the market. This can be simplified as the “3 M” concept: Mindset, Model, and Marketing.
The mindset aspect is often overlooked in the business world because it is abstract and difficult to plan, implement, and measure.
However, nurturing the right mindset is crucial for a company to navigate difficult times. It involves self-awareness and selfgovernance, particularly in dealing with egoism, growth, and unity. Shifting one’s mindset is neither simple nor impossible.
It depends on the perspective chosen when interpreting situations. Egoism often blinds individuals to opportunities and innovation.
To foster growth, individuals must cultivate self-awareness and exercise self-governance by critically assessing their perceptions and understanding the broader context.
For example, the global pandemic accelerated digital transformations in businesses worldwide, including SMEs in Malaysia. Those who resisted departing from traditional models struggled to remain relevant in the evolving market.
Digital tools not only expanded local reach but also revealed international prospects. However, it’s important to note that digitalization needs a clear purpose; aimless digitisation can increase expenses without yielding desired outcomes.
Therefore, redesigning the business model and aligning the market positioning are essential for success. In addition to addressing egoism, cultivating a growth mindset is crucial.
In challenging times, businesses need a targeted positive outlook. Recognising impending difficulties isn’t pessimism; it’s a proactive step towards channelling positivity with purpose.
For instance, many businesses heavily reliant on local markets suffered losses during lockdowns and reduced consumer spending.
At such times, businesses face two options: close down or explore new markets.
The choice depends on the business owners’ mindset, whether they perceive the challenging market as a threat or an opportunity. Some SMEs recognised the risks of relying on a single market and diversified globally, which required adapting their business models and strategically repositioning themselves.
This diversification is not just a reaction to the pandemic but a forward-thinking business strategy.
To remain relevant in the global market, businesses must embrace a targeted approach that aligns with the target market, society, and stakeholders.
This unity requires a review of the existing business model. During lockdowns, the market embraced technology-driven solutions, expanding online product and service accessibility. Consumers now have more choices and can easily compare prices.
As consumers adapted to the pandemic, spending habits changed, causing some SMEs to experience reduced demand while others thrived in e-commerce.
Additionally, businesses integrated into global supply chains by sourcing materials and components from various countries, further expanding their global reach. Rapid adaptation became crucial to align with evolving consumer preferences and maintain relevance. Building connections with society is essential for ongoing consumer relevance and engagement.
A redefined business model is valuable only if it is effectively implemented in the market, highlighting the significance of the third M — marketing.
Marketing has evolved from a sales and promotion tool to a comprehensive business developer that efficiently integrates organisational resources.
Malaysian SMEs have been compelled to adopt advanced technologies like artificial intelligence, blockchain, augmented realities, and data analytics to compete globally. However, successful deployment of these technologies requires alignment with internal capabilities, empowering businesses to meet international standards and compete effectively on a global scale.
A comprehensive marketing function requires a strategic purpose that aligns with both the business and global market objectives, fostering a sense of unity with the global landscape. In today’s fiercely competitive new normal, having distinct value
