International businesses have changed throughout the years due to the revolution of technology. These changes have increased the competitive advantage for business, which will lead to a prosperous economy. Digitalization is the future of the global economy and society. Digitalization has reduced the errors in the products and services, which will lead to a competitive advantage for the company. Kolbenschlag, Michael (n.d.) stated that companies could lower their risks by using the benefits that come with digitalization. For example, Daimler, a German multinational automotive corporation, manages to improve its trucks, which helped them to lower the cost for their customers to 20 percent. The automotive market is an important market for German, and with this success, it provides them a competitive advantage.
Nonetheless, there are some challenges that companies face when implementing digitalization in their business. There will be disruptive competition due to digital technology. Companies right now have the ability to enter into a new market, which increases the risks for the other companies. Thus, having technology doesn't give an advantage unless if they keep developing, which can be challenging.
To sum up, digitalization can be held as an opportunity and threat at the same time for the international business. Digitalization will increase competition on a global scale because it is easy for corporation to enter a new market. Disruptive competition is one of the challenges in which international businesses lose their competitive positions.