How to Enter the Global Market
The global market is a vastly different place than any one country’s domestic market. There are similarities and differences in economics, but these are the result of differences at the margins and core of a market. Ordinary competitive analysis involves the interface of newly erupting conditions. This is the cutting edge of commercial affairs. The commonality is overwhelming. And yet, there are also many differences, too. In addition to these, globalization has pushed markets to greater global commonality.
One of the key differences between local and global markets is the level of standardization. While most companies sell the same product or service in many countries, a world competitor can use economies of scale to push costs down and increase quality and reliability. By standardizing all products, the competition is global and standardized. This means that global companies compete on appropriate value, price, quality, reliability, and delivery. This means that companies in each country have a common set of customers who are demanding similar products.
In order to effectively enter a global market, companies must first understand their product or service. This means studying the culture, behavior, marketing channels, and meeting locations. Creating a global brand image is a challenge, but if done right, global marketing can be an opportunity. And the challenge is to stay on top of the game. To overcome challenges, corrective mechanisms should be in place to prevent future mistakes. However, this doesn’t mean that companies should ignore these challenges.
While global marketing requires cross-border marketing, it also involves regional marketing. For example, the United States has large trading partners in China, Mexico, Canada, and Europe. As such, global companies need to develop multiple profiles. Before entering a global market, companies must consider the laws, competition, and cultural preferences of the target market. Further, companies should know the legal requirements of the land to avoid enforcing unfair trade policies. Lastly, international marketers must understand the cultural differences in order to develop appropriate strategies.
In the Middle East, barriers to globalization are not limited to national preferences. Various legal and financial restrictions prevent the free flow of information and technology. In addition, interference in radio and television is considered a form of pollution. The list goes on. The bottom line is that a successful global corporation will not be limited by national boundaries. Its products and services must appeal to global consumers. A global company can also be a leader in the field of globalization.
Companies that want to enter the global arena should identify whether their industry is ripe for global competition. A careful study of the economies of the industry will highlight if the opportunity for global competition exists. Typically, it will be ripe when the benefits of serving a global volume outweigh the costs of serving that volume. So, while it is difficult to assess which countries offer the greatest scope for global competition, companies should be careful not to let this deter them from expanding locally.
The global market is a vastly different place than any one country’s domestic market. There are similarities and differences in economics, but these are the result of differences at the margins and core of a market. Ordinary competitive analysis involves the interface of newly erupting conditions. This is the cutting edge of commercial affairs. The commonality is overwhelming. And yet, there are also many differences, too. In addition to these, globalization has pushed markets to greater global commonality. One of the key differences between local and global markets is the level of standardization. While most companies sell the same product or service in many countries, a world competitor can use economies of scale to push costs down and increase quality and reliability. By standardizing all products, the competition is global and standardized. This means that global companies compete on appropriate value, price, quality, reliability, and delivery. This means that companies in each country have a common set of customers who are demanding similar products. In order to effectively enter a global market, companies must first understand their product or service. This means studying the culture, behavior, marketing channels, and meeting locations. Creating a global brand image is a challenge, but if done right, global marketing can be an opportunity. And the challenge is to stay on top of the game. To overcome challenges, corrective mechanisms should be in place to prevent future mistakes. However, this doesn’t mean that companies should ignore these challenges. While global marketing requires cross-border marketing, it also involves regional marketing. For example, the United States has large trading partners in China, Mexico, Canada, and Europe. As such, global companies need to develop multiple profiles. Before entering a global market, companies must consider the laws, competition, and cultural preferences of the target market. Further, companies should know the legal requirements of the land to avoid enforcing unfair trade policies. Lastly, international marketers must understand the cultural differences in order to develop appropriate strategies. In the Middle East, barriers to globalization are not limited to national preferences. Various legal and financial restrictions prevent the free flow of information and technology. In addition, interference in radio and television is considered a form of pollution. The list goes on. The bottom line is that a successful global corporation will not be limited by national boundaries. Its products and services must appeal to global consumers. A global company can also be a leader in the field of globalization. Companies that want to enter the global arena should identify whether their industry is ripe for global competition. A careful study of the economies of the industry will highlight if the opportunity for global competition exists. Typically, it will be ripe when the benefits of serving a global volume outweigh the costs of serving that volume. So, while it is difficult to assess which countries offer the greatest scope for global competition, companies should be careful not to let this deter them from expanding locally.