When Walmart took over Flipkart, it portrayed the fact clearly that India’s e-commerce was coming of age and repeated history. The giants of the United States would be investing billions in India because of the bountiful opportunities which the country offers. This could be considered to be a short-term boost for the consumers in India.
When the excitement cools down, the prices are expected to become enhanced and the choice of the consumers would become more restricted than before. The foreign companies would be mining data and would be able to manipulate and dictate the preference of the customers. The retail industry of India might again get colonized by the foreign companies. Protecting the physical services and goods is not desirable because it restricts the chance to evolve and innovate which stifles the productivity and competitiveness of the company.
The protected domestic companies of the nation would become lethargic, would offer products which are of an inferior quality and would charge high prices for the services. In the digital economy, the scenario is completely different because the value can be found in the ideas which are spread instantly by using the internet. The entrepreneurs of a country can learn the innovations and business models of another country and can implement it in their own country.
As the main technologies improve, they start becoming cheaper, smaller, faster and easily accessible to everyone. The emergence of startups is constant and often the established stalwarts lose out on their business. It is very important to have execution and speed in order to survive in the competitive business world. The technology based industries require a lot of capital investments and hence they reduce the power of the small players because rich finances prove to be advantageous to the larger corporations.