Is Globalization a Threat or an Opportunity for Business?

Is Globalization a Threat or an Opportunity for Business?

Introduction

An organization under the influence of international marketing and globalization can experience various changes not only in the area of their management but rather on the entire business environment. Although there still some evidence left from the impact of recession still, many organizations are not stopping to enhance their business performances and effectiveness. The power of knowledge and the skills of the individuals in the organization are still the best key towards success. However, the human capital should be combined with the ideas of innovation in which the organization can find its advantage. In addition, the use of the technologies is still effective in every organization whether in domestic and international setting.

Many organizations are seeks the opportunity from the influence and impact of globalization towards the international marketing. Although the organizations are clouded with difficulties in the current international business situations, the globalization promises to aid the organization unveiling its potential. Upon the discovery of the benefits of the globalization, the organization can thereby, manage to facilitate the continuous business and progress according to their organizational plans.

Globalization

Many marketers have opposing beliefs about the influence of globalization and the associated impacts that it might bring. For most of the time, the business leaders design a strategy that will help them satisfy their organizational goals. The most common approach that the organization performs within the concept of international marketing is the idea of brand expansion and product concepts. With the combination of innovative approaches, the organization has potential in increasing the revenue and effectiveness. In addition, the impressive marketing approach that is very effective is delivering the needs of the market through the distribution system of the management.

Globalization presents both challenges and opportunities and it seems that the only way to succeed is to let the organization fell into some series of risk decision making. Globalization equals to the global market opportunities and global competition. The international organizations also faces the restrictions upon entering the market such as the tax policy, trade and tariff procedures, market dominance, and many other corporate issues (Naumann & Lincoln, 1991). Moreover, the business can experience the culture shock and cultural differences in the foreign markets in the first quarter of the business’s operation. However, the companies that are planning to do business abroad should understand the differences and quit comparing the foreign market on the domestic market. Everything is different when it comes to prices, margins, and profits.

Beyond the influence of globalization, the international organization should also promote the knowledge and experience that can be gained from international operations and practices. Part of this idea is the promotion of global communication and information technologies. The flow of information through the systems allows the businesses to distribute their products or services in the foreign market with a confidence that their process brings benefit in between them (customer and firm). Since the introduction of Internet, the international marketing can use this kind of advantage and became the medium to provide or discover the other opportunities that are available in the market (Berthon and others., 1999). Along with the global movement in using the Internet, the organizations are allowing customization or product diversification and as well as mass production. Furthermore, the internet has the ability to monitor the business transactions and addresses the business related concerns such as the issues on perishability, heterogeneity, simultaneity and tangibility.  Despite of the provided advantages in using the Internet and technological supports, international marketing remains a challenging venture.

Towards Competitive Position

It is important for the business organization to acknowledge and be integrated with the different international marketing strategy that can drive the entire organization to reach its goal (Lim and others, 2006). Many business propellers and endeavors managed to adapt different classification in the standardized international marketing. But in all, the field of global market filed is more sophisticated and robust that aims to deliver what is best for the community. However, the common mistake done by some international marketers is the application of replication strategy (Arnold, 2003).

Conclusion

Globalization do not only delivers the drawbacks but also provides information that can aid the international marketing in engaging with the foreign markets. Organizations need to be concerned with the strategic marketing issues within the firm operating in an international environment. With that, they can relate a suitable business strategy for their overall international marketing strategy that can be formulated and executed. The organizations are encouraged to develop the effective strategies from the researched microeconomic environment and implement them carrying the concept of international marketing. Through the collected ideas in the market, the organizations can definitely facilitate the international expansion and achieve the international operations. 

 

References:

Arnold, David. Strategies for Entering and Developing International Markets, In Mirage of Global Markets, The: How Globalizing Companies Can Succeed as Markets Localize. Financial Time Prentice Hall, 2003.

Berthon, Pierre, and others. Executive Insights: Virtual Services Go International: International Services in the Marketspace, Journal of International Marketing, 7 no. 3 (1999): 84-105

Lim, Lewis, and others. Development of Archetypes of International Marketing. Journal of International Business Studies, 37 no. 4 (2006)

Naumann, Earl and Lincoln, Douglas J., Non-Tariff Barriers and Entry Strategy Alternatives: Strategic Marketing Implication, Journal of Small Business Management, 29 no. 2 (1991)

 

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