Global Industries and the Need to Adopt Global Strategies

International Business
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International Business
Question 2
Globalization is a captivating spectacle that can be understood as a global system of connectivity and competition. However, globalization encompasses a range of political, social, as well as economic changes which accelerates the exchange of ideas and commodities worldwide. Over the centuries, societies across the globe have established progressively. However, global integration has increased drastic changes in the recent days. There have been unprecedented changes in transportation, computer technology and telecommunication networks, which have given access to the new impetus making the world more interdependent for industrial purposes (Pettinger, 2017). The multinational corporations are manufacturing goods and services in various countries and dispatching them for sale in most parts of the world. Circulation of cultures, ideas, technology, and raw materials is moving freely across national borders. As a result of globalization, companies have managed to operate in different countries which have led to increased international trade (Hirschhausen & Bitzer, 2000). I agree that due to various factors such as advanced technology, improved telecommunication networks, and unprecedented changes in technology, industries have expanded their business globally, hence the need to adapt to global strategies such marketing strategy, global labor strategy, and competitive strategies.
For example, firms such as McDonalds and Starbucks are now recognizable in various parts of the world. Moreover, integration increment has resulted in inequality. Without the electronic networks that project dominant cultural products globally then globalization becomes inconceivable. Advances in transportation, free-market ideology, and communication networks have led to an unprecedented mobility of commodities and capital. For example, taking advantage of plentiful and readily available labor in the south, the Northern countries want to establish global markets for their goods and services. These countries seek to use global financial institutions and local trade arrangements to induce undeveloped countries by lowering tariffs, enabling labor standards, and privatization of enterprises to expand their industries. Firms are becoming global due to improvements in transportation systems. Large cargo ships have minimized the cost of transportation from one country to another. Industries enjoy economies of scale which indicate that the cost per every item is reduced on a larger scale and thus the push for more industries going global (Kluyver, 2010). Effective transport also indicates that there is a fast mobility of people and goods. Secondly, the World Trade Organization (WTO) has promoted freedom of trade between countries which has helped to remove tariff barriers among countries. Additionally, the emergence of global blocks such the European Union, North American Free Trade Agreement (NAFTA), and Association of South Asian Nation (ASEAN) has also helped to reduce national barriers. This has allowed firms to expand their business in various part of the world to gain market share. In addition, mobile technology and the internet have made communication easier in different countries. Availability of cheap labor and skills in countries such India has reduced labor cost for countries willing to invest in intensive industries such as clothing (Global Policy Forum, 2018). Globalization of firms has increased economic prosperity and granted greater opportunities in the developing world. There is an efficient use of resources due to the enhancement of civil rights.
Internationally, firms have become cynical with sales in the marketplace due to saturation of old markets in search of new markets. Going global has been termed with increased exports or global sourcing. To become global, firms must have the capability to enter any market in the world they opt to compete. The firms' resources required to sell internationally include brochures of product and sales team to handle sales orders globally. However, the business resources in going global are increasing every day. Firms are going global because the business reward is greater for a global strategy. To gain access to local customers, industries needs to deploy business models in their home countries and establish a production presence in relation to the nature of the business or regulatory restrictions (Gerardo R. Ungson, 2014). However, industries have begun to have a tendency of transferring the entire manufacturing process of a specific product to a low-cost setting and later export the products to various consumer markets. Technological forces have driven the world towards a converging commonality with improved communication and transport accessibility (Condon, 2002). This has led to the emergence of global markets for standardized consumer products with corporation enjoying from economies of scale in production. The trend has pushed markets towards global commonality in business. Standardized products such as agricultural products, cement, petroleum, and chemicals are sold over the world. However, companies desegregate the production process and focus in an advantageous location for their products. Firms like Coca-Cola, Pepsi-Cola, Hollywood movies and Greek salad sell their products worldwide thus enjoying economies of scale. These firms are successful across multitude, regional, and are trained to various ingrained loyal preferences.
Following the gurus’ argument, firms need to adapt to global standard strategies such as brand and product strategies, marketing strategies, and promotional strategies as a way of expanding their businesses globally. Firms faced with strong pressure for cost reduction adopt global strategies. Global strategies will allow firms to sell a standardized product in all parts of the world. As aforementioned, these firms are able to enjoy economies of scale because they produce well in large bulk. Firms brand their product to differentiate them from those of competitors. Branding also makes the product more recognizable and thus developing customer loyalty which deters market entry by other firms (Mooij, 2010). Additionally, a brand may bring out a sense of feeling such as being a stylish or good judgment when buying a certain product. Using local brands offers a context for controlled experimentation without harming the global brand portfolio that the company might have built in emerging markets (Glowik, 2017). For example, Coke used a strategy that seeks to capitalize on its global brand image when the firm expanded their products in India. However, the product itself has a primary influence on customer experience. Firms have gone global due improved design and delivery of their product that fully satisfies the consumers worldwide. The success of international marketing largely depends on satisfying the demands of the market (Inkpen, Inkpen, & Ramaswamy, 2006). The main objective of conducting market communication skills or carrying out promotion tactics is to communicate with customers and influence their attitudes to encourage them p...