iThnk.com

Does Web 2.0 Create an Even Playing Field for Business?

Has the plethora of new marketing tools available with Web 2.0 helped create a more even playing field for business? The short answer is, potentially… The more accurate answer to this somewhat loaded question contains a lot more ifs, buts and maybes.

The Dilemma

Web 2.0 certainly has the ability to reduce the gap between small and big business. See  Micro-brewing Social Media for a great example of how. But as the gap potentially narrows; the reality is that it also widens in the majority of cases.

Sounds deep I know, and it is. Deeply troubling if you’re an old school small business content to watch the world pass by. But equally as disturbing at the other end of the spectrum if you’re reliant upon traditional media to push your message to increasingly selective consumers. In either case opting not to join “the conversation” will put distance between those who do and those who don’t.

Small Business

If you’re a SME ticking along nicely it may be hard to see how an activity like joining a social network could help improve your customer relationships. It probably seems like too much hassle for most. For those who consider online communication as just a necessary box to tick and not a powerful marketing platform, investing time in Web 2.0 is not going to appeal. It will always be difficult to make inroads when the true value is not fully understood.There are heaps of SMEs embracing web 2.0 with great results – check out this success story. However, I don’t think I’m wrong when I claim is the exception rather than the rule (at least for the time being).

The Big Fish

A lot of the big companies that have historically spent loads of cash through print, TV, and radio advertising are in the same boat as the hesitant small companies. The “lets see what happens with this second web thingee”, soon to sink boat. Being purely a spectator to online developments will certainly allow competitors to catch up, or more likely, go further ahead.

What I’ve eluded to above is that it’s not the business size, rather the business attitude that dictates what impact Web 2.0 can have on growth. So to answer the opening question is no, it does not create an even playing field. I personally believe the new net has actually pushed big business even further ahead. Why? I’m glad you asked…

Reality Bites

Bigger companies are in a better position to capitalise on new developments, quicker. It comes down to resources. Lets say you’re trying to build a kick ass corporate blog, first you need good content. That content comes form interesting people, genuine company insight, and well written posts . Putting all these together is hard work, time consuming and almost impossible if the right people aren’t involved. Big business have the resources to put all the ingredients in place. If one of the important ingredients [e.g. video production] doesn’t exist in house, they have the means to outsource it. Importantly they can do it quickly, spread the load between employees to ensure good content is always coming through, and even throw some money into search engine advertising to promote it if need be. Not very “even” if you ask me.

Small business does has the advantage of agility. Less organisational red tape coupled with a more intimate company culture can help SMEs rip into new web domination. I believe the rise of Web 2.0 has given small business a realistic opportunity to compete with the big boys head on. Communicating through blogs and social networking is much more cost effective (than traditional media) and  the barriers to entry are few. The well resourced companies will make it happen quicker that’s for sure; but there’s no reason why the underdog can’t catch up.