Globalization and Its Impact on Marketing Strategies

Topics: Globalization, Economics, International trade Pages: 14 (4993 words) Published: April 1, 2011


The objective of this research is to gain a better understanding of the effects of globalization on firms’ international marketing cooperation and performance of firms, both in developed and emerging economies. This dissertation mainly focus on two questions, first is does globalization affect firm performance? And second is the relationship between global market opportunities and performance stronger than the relationship between global market threats and performance? By answering these questions, the study indicates the extent to which firms in two different economic contexts are affected by globalization. It also shows which dimension of globalization effects tends to have stronger impact on the performance of firms that are located in very different market environments.

The emphasis of this dissertation is on how the degree of cooperation in co marketing alliances enables firms to manage globalization effects and stay competitive in international markets. As suggested in past literature, globalization makes alliances an essential part of a firm’s strategy in order to stay competitive and to achieve superior performance. To better capture global opportunities, firms tend to cooperate with other firms to capitalize on and leverage their limited resources since it is impossible for one firm to “do it all and go it alone. Similarly, in order to cope with increasing global competitive threats, firms are likely to form alliances .Based on the classical industrial organization perspective—the market power, firms form alliances to reduce competition and uncertainty. Through such cooperation, companies gain market power that helps alleviate competition and improve its competitive position. Therefore, the next two research questions of this dissertation are: 1) Does globalization affect the degree of cooperation in co-marketing alliances? and 2) Do co-marketing alliances influence firms’ international performance? Guided by these two broad research questions, a more specific emphasis of this paper is on the degree of cooperation in international marketing activities of the co-marketing alliances among firms. Past literature also suggests that firms from emerging economies usually possess characteristics which distinguish them from those of developed economies. Therefore, empirical investigation son the relationships among globalization effects, degree of co-marketing alliances, and performance of firms from Thailand and the U.S., which possess different backgrounds and characteristics, are undertaken by a primary data approach. The data collection using survey technique is thus used.

Globalization has caused dramatic changes to business practices around the world. Companies Such as IBM, Intel, Microsoft, and Philips have started to outsource specialists from various parts of the world, causing job shifts and changes in companies’ structures. Alliances among automakers (e.g., GM-Ford- DaimlerChrysler, Ford-Mazda, and GM-Honda), petroleum manufacturers (e.g., BP-Mobil, NUPI-Chevron Texaco), and airlines (e.g., star alliances) are other examples of changes driven by this phenomenon. Therefore, this dissertation investigates the effects of globalization on business firms with a particular interest on how it affects firms from both emerging economies (i.e., China, India, Thailand), and developed economies, (i.e., the U.S). In this study, “globalization” refers to the process of increasing social and cultural inter-connectedness, political interdependence, and economic, financial and market integrations that are driven by advances in communication and transportation technologies, and trade liberalization. The dissertation is comprised of three related studies. The first study is empirical research designed to examine the effects of globalization on the performance of exporting firms in...
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