Essay About Global Competition And G. Yips Article

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G. Yips article to me is that he states that companies tend and should globalize, which will increase global competition and in turn decrease global prices, however, the governmental drivers of the US restrict import of high quality Japanese cars, by setting high emission test requirements and high import taxes. These actions reduce globalization and fair competition as well and I would say substantially discriminate Japanese automakers forcing them to build factories in the US. Very good ideas and points are delivered through the Framework of Global Strategy Levers which in my opinion is applicable to any company attempting to get into the global market with its standardized products. I also agreed with G. Yips table showing the relationship between Globalization Dimensions and Global Strategy Levers. One of the Dimensions is Marketing Participation and under this Dimension author brings an example of Electrolux Group Ð- Swedish appliance giant, which is pursuing a strategy of building significant share in major world markets. I think that Electrolux has a lot of potential on the global market, only because of one fact that it has accommodated to Russian economical situation and has one of the most sophisticated structures in logistics with multiple distribution channels. Building the strategy for globalization that will be the most appropriate is not an easy task. According to G. Yips Dimensions/Global Strategy Levers Model following dimensions will be of the great significance for setting either pure Global Strategy or pure Multidomestic Strategy: Ð* Market Participation Ð* Product offering Ð* Location of Value-Added Activities Ð* Marketing Approach Ð* Competitive Moves All of the above combined represent the path to follow for successful globalization, however, some other issues need to be considered, such as benefits and drawbacks of globalization. Benefits of globalization and/or using global strategy levers differ depending on the company and its products. The critical benefit, I believe, is cost reduction, which is based on product standardization. A marketer can substantially decrease its costs by moving its production to low-cost countries or by pooling production for two or more countries. That is why; nowadays it is easy to find brand name products made in China, Malaysia or in other low-cost country. Quality concentration also plays a great role when assessing the benefits of globalization.