Affect of Global Market – Explain How the Global Market Affects Business Strategy
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Explain how the global market affects business strategy.
Research shows that growing internationally is positively associated with firm profitability. A corporation can select from several strategic options the most appropriate method for entering a foreign market or establishing manufacturing facilities in another country. The options vary from simple exporting to acquisitions to management contracts. See the Global Issue feature to -see how U.S.-based firms are using international entry options in a horizontal growth strategy to expand throughout the world.
The quest to generate more profit is, of course, the basic purpose why companies want to expand their products reach worldwide. When a business goes global, it is important that you should benefit from the countless opportunities that the Internet provides.
Aside from an endless sales potential, global marketing rakes in a whole new set of advantages, too. Among them is that your business will eventually enjoy having an established worldwide presence. This is very rewarding because a particular brand, for instance, can be advertised on Internet resources and customers can readily relate to it wherever they may be in the world. Its international scope makes your advertising and marketing task more cost effective.
Although global marketing advantages can be overwhelmingly beneficial, it still has its share of disadvantages. Due to the wide scope of Internet marketing where results can be accurately measured in a short span of time, its downside on global marketing is that the difference of consumer response can be unpredictable to the marketing mix.
Other disadvantages when you promote one product through different markets would include:
a. the competitive differences over various brands and product development
b. the differences in consumer patterns such as needs and wants as influenced by their own regional background
c. differences in legal concerns that may create conflict to that of the home market
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