Globalization refers to a global entry strategy in which businesses treat the world as an undifferentiated worldwide marketplace (Deresky, 2008, page 219). Using this strategy a company develops standardized products and marketing for all of its worldwide markets. This strategy can be used effectively when your product or service can meet customer demands in different cultures and location.
In the agricultural industry, this can mean exporting. Exporting is a less risky method of foreign market entry and gives the business and opportunity to learn more about overseas markets before investing in a foreign manufacturing plant. There are two types of exporting: passive and aggressive. A passive exporter waits for overseas orders to come in while an aggressive exporter develops market entry strategies. An example of successful implementation of passive exporting would be the “sellers” on eBay. They are able to advertise their products on eBay and wait for orders to come in. There are sellers and buyers from all over the world interacting. eBay has successfully used the information technology explosion to go global through e-commerce.
Dell has also successfully implemented the globalization strategy by being fully integrated. Dell has factories in Ireland Brazil, China, Malaysia, Tennessee, and Texas and it has an assembly and delivery system from 47 locations around the world (Deresky, 2008, page 222).
Regionalization, on the other hand is a global entry strategy in which business link their local markets to a particular region, thereby allowing more local responsiveness and specialization (Deresky, 2008, page 221). This strategy is more effective when your products or services need to be adjusted to adequately meet the needs of the local customers. A discussion of Wal-Marts failures (Deresky, 2008, page 203) clearly illustrates the need for some companies to fully understand and address the differences of cultures in different regions. For example, in...
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