Globalization has led to increasing levels of rivalry and competitive pressure among competitors acting in the same markets and geographical regions. Nonetheless, small and medium enterprises are becoming critical players in national economies and worldwide businesses. However, little is known about the operations strategies these SMEs employ to face the pressures of globalization. In Brazil, the growing market upheaval and uncertainty has been aggravated by the increasing number of mergers with and acquisitions by global organizations and companies operating in the country. In this context, companies that are knowledgeable about the environment in which they operate can take proactive action and influence the system's evolution. This article discusses the relations between competitive business environments, perceived uncertainties, threats and opportunities from the standpoint of SMEs. A case study of a medium size company, dubbed X, is described here. This company enjoyed a stable situation in the market for about eleven years, ranking second in its area in the domestic market, until the domestic leader company was acquired by a leading global corporation. This article lists and discusses suggestions that helped the company remain competitive despite its paucity of financial and human resources.
small and medium enterprises; globalization; operations strategy; social capital
