MANAGEMENT

Globalization in Transition



Globalization in Transition

Before determining whether it is better reconstituting the local market or whether globalization has made it impossible; it is mandatory to understand what globalization is and how has it replaced the role of the local markets. The term going global refers to global engagement. Traditionally each organization regardless of the genre tends to operate in the geographic location they reside in and caters to the needs and wants of the local customer by tweaking the product or the service based on their demographics and psychographics of the consumer. The company is then able to earn revenues and flourish in terms of enjoying the monopolistic advantages. There always comes a time when a company that is flourishing in its own product or service territory wants to further flourish and earn more revenues at a tangible level and wants to create a brand image and carve a niche for itself at a wider scale. It is then when a company thinks globally and makes an entry into the foreign market (Globalization, 2012).

When it comes to the expansion of the product or service or organization to be more precise; there are many challenges that need to be met that ranges from operation in environment that are multi-nations to the creation of complex and multiple products as well as different marketing strategies in order to attract the foreign customer base. The question that is important when it comes to surviving in the carnivorous global market is the way the company will serve its customers and how different is it from the competitors (Robertson & Roland, 1992).

The good news in terms of going global is that there are numerous opportunities that can be availed. The first step to success is the right assessment of the opportunity that is the comprehension in terms of challenges in relation to the regulatory issues, incentives, trends, development of apt strategies, taking advantages of the opportunities at the right time as well as mitigation of risks (www.globalissues.org).

The road that goes or heads towards being global is said to require the factor of being local. It is also obvious that since one is operating in its own country is bound to have local customers. Most of the times the product or service do not tend to translate from the local market to the global market considering there are considerations or barriers in terms of translation of languages, political and cultural sensitivities that tend to have a huge impact in terms of the interplay that exists amidst global risk and opportunity (Eriksen & Hylland, 2007).

The advantages of globalization is that businesses can find better ways to have backward integration where it can find cheap resources in terms of suppliers but producing same quality standards. They can collaborate with another complementing brand and based on that brands equity Business can create awareness about their brand. Based on the likings and disliking of the target market, product can be customized. Based on Product customization Business can attract largest customer ...