The role of digital platforms in reshaping market entry strategies for SME

Abstract

Small and medium-sized enterprises play a vital role in economic growth but face challenges that include high costs, limited marketing options, and difficulty entering new markets. Digital platforms such as Shopee, TikTok, and Instagram provide features that can overcome the challenges faced by SMEs. These digital platforms help SMEs cut costs, increase visibility, and engage a larger audience. SMEs can utilize these tools to gain insights, which can help them obtain a wider audience of customers, better target their markets, and improve marketing campaigns. Network Theory, the Resource-Based View (RBV), and Transaction Cost Economics indicate that the various digital platforms help small firms compete with large corporations, penetrate new markets, and adjust to changing trends. These platforms are often very difficult for small and medium-sized businesses to take full advantage of, given their lack of an in-depth understanding of using them optimally. The right methods will enable SMEs to survive in a hostile digital economy and achieve sustained growth.