The Globalization of Smes in Singapore: Strategic Options

This paper discusses the problems and weaknesses of many SMEs in Singapore in the face of the rapidly changing and increasingly global environment. It focuses onto the various strategic options taken by specific SMEs in their attempts to globalize, and to overcome their problems and weaknesses. These include the formation of various kinds of strategic alliances ranging from intra-industry co-operation to co-operation with suppliers, customers, existing or potential business partners or competitors. Specific cases have been cited in the paper to illustrate the different forms of co-operation among businesses. These include co-operation among local retailers in the same trade to upgrade themselves through a franchising arrangement, co-operation among local manufacturers to jointly market and promote their products, overseas expansion through franchising, upgrading and improving business operations through the assistance of suppliers and/or customers as well as through joint ventures with better-established businesses.