Expanding Into the Global Market
Increasingly, business owners are recognizing the benefits of extending their companies into global markets. Reaching global markets allows them to increase brand awareness and diversify their customer base, resulting in a huge boost in revenue. It also reduces costs by enabling them to take advantage of economies of scale and avoid paying higher prices for local resources. Furthermore, global marketing helps them to diversify their risk and be less influenced by crises in certain countries.
The world is in a constant state of evolution and change, and preferences are constantly shaped and reshaped. But, there is one great thing that everybody in the world has in common: they all want products that meet their needs. And that’s why a company that understands and embraces the new global market is more likely to succeed than a company that rejects and ignores it.
There are two vectors that shape the world: technology and globalization. The former helps to determine human preferences; the latter drives them toward a global commonality that makes even remote and impoverished peoples eager for modernity’s allurements. As a result, global markets for highly standardized consumer goods now exist on a previously unimaginable scale. Corporations that reshape these vectors to their own strategic advantage can profit enormously from economies of scale in production, distribution, and marketing and management. They can thereby decimate competitors that still live in the disabling grip of old assumptions about how the world works.
The companies that are most successful in the global marketplace are those that sift through and select the best parts of their home and foreign cultures to create an effective mix of business practices. They must recognize the impact of different regulatory, business and cultural environments on profitability, and provide assistance to manage the ’people side’ of their expansion into new territories. This can include recruitment solutions, outsourcing services and advice on any cultural issues that might arise.
This type of strategy is most often employed by businesses that produce and sell products with a broad international demand. This includes fast-moving consumer goods, clothing, automobile and banking corporations. Smaller software and internet-based businesses that solve a universal problem are also seeing tremendous growth in the global market. For example, a vegan burger chain would struggle to operate in India because cows are sacred to the Hindu religion and their meat is forbidden. Adapting the company’s strategy to fit into these different cultures, values and languages takes a lot of money and time. But it can be a very worthwhile investment for the long-term future of the business. It is a step that every company should consider taking.
Increasingly, business owners are recognizing the benefits of extending their companies into global markets. Reaching global markets allows them to increase brand awareness and diversify their customer base, resulting in a huge boost in revenue. It also reduces costs by enabling them to take advantage of economies of scale and avoid paying higher prices for local resources. Furthermore, global marketing helps them to diversify their risk and be less influenced by crises in certain countries. The world is in a constant state of evolution and change, and preferences are constantly shaped and reshaped. But, there is one great thing that everybody in the world has in common: they all want products that meet their needs. And that’s why a company that understands and embraces the new global market is more likely to succeed than a company that rejects and ignores it. There are two vectors that shape the world: technology and globalization. The former helps to determine human preferences; the latter drives them toward a global commonality that makes even remote and impoverished peoples eager for modernity’s allurements. As a result, global markets for highly standardized consumer goods now exist on a previously unimaginable scale. Corporations that reshape these vectors to their own strategic advantage can profit enormously from economies of scale in production, distribution, and marketing and management. They can thereby decimate competitors that still live in the disabling grip of old assumptions about how the world works. The companies that are most successful in the global marketplace are those that sift through and select the best parts of their home and foreign cultures to create an effective mix of business practices. They must recognize the impact of different regulatory, business and cultural environments on profitability, and provide assistance to manage the ’people side’ of their expansion into new territories. This can include recruitment solutions, outsourcing services and advice on any cultural issues that might arise. This type of strategy is most often employed by businesses that produce and sell products with a broad international demand. This includes fast-moving consumer goods, clothing, automobile and banking corporations. Smaller software and internet-based businesses that solve a universal problem are also seeing tremendous growth in the global market. For example, a vegan burger chain would struggle to operate in India because cows are sacred to the Hindu religion and their meat is forbidden. Adapting the company’s strategy to fit into these different cultures, values and languages takes a lot of money and time. But it can be a very worthwhile investment for the long-term future of the business. It is a step that every company should consider taking.