Disadvantages of Globalisation

Only available on StudyMode
  • Download(s) : 97
  • Published : February 26, 2013
Open Document
Text Preview
Disadvantages of Globalization
Globalization is any company’s target. However, it should be noted that globalization has disadvantages as well as advantages. One of the disadvantages of globalization is the over-standardization of products through global branding. Using Emirate Airline to illustrate this point, globalization will means that their services are standardized which aim to serve all customers. They would lose their uniqueness of the business culture after they go global. Also, the over-globalization will result in the lack of creativity and product diversity. Moreover, globalization can also create diseconomies of scale as not all countries have the same growth and economic cycle. For example, Emirate may operate very well in the Middle East and Europe market but expanding into Asia or America market will reduce their profit. This could be due to difficulties of coordinating activities in those new markets or the culture differences. It is also important to note that globalization will cause de-industrialization and high unemployment in the domestic market Segmentation, Targeting and Positioning

Any business can not afford to promote their product in the similar ways using similar strategies. This is because not all products can serve the same requirements and demands. However, it is very important that customers are aware of the brand’s existence and the unique selling point of the product and brand must be well communicated to the user. Thus, businesses use segmentation, targeting and positioning (STP) to find their customers and target them so that they can promote their product in the most efficient way. The first step of product promotion or even when product is just at its research stage is segmentation. Segmentation is the division of a broad market in smaller categories consisting of individuals with the similar characteristics. These individuals tend to show similar thinking and perception towards products and brands. When the market...
tracking img