The Nature of Global Competition
Kristie E. Bader
The Nature of Global Competition
BUS490 – Business Policy
August 21, 2011
Professor Matthew A. Gilbert
Strayer University
Global competition has been a vital reality in successful business since the ancient times. A primary example of global competition from this time is that of the spice trade Asia. Arab traders were mainly the transporters of goods, i.e. the spice trade, through Levant and Venetian merchants to Europe. In 1453, the rise of the Ottoman Turks, they cut the route from Asia to Europe and initially helped the spice trade with overland routes. With more demand for the supplies initiatives needed to be taken, beginning with maritime trade routes, which led to tremendous growth with commercial activities. Hence, the supply and demand of global competition. Advancement in technology throughout the centuries has improved the ability to attain goods and services from all over the world. Global competition has helped to increase the profitability from a small mom and pop business to a large corporation moving into international business. Presently the internet has developed into the primary business tool, not just merely a network used for research. Small and large businesses have been proactive and progressive in seizing the opportunity to become more competitive and productive globally. “Advancements in telecommunications are drawing countries, cultures, and organizations worldwide closer together. Foreign revenue as a percent of total company revenues already exceeds 50 percent in hundreds of U.S. firms, including ExxonMobil, Gillette, Dow Chemical, Citicorp, Colgate-Palmolive, and Texaco.” (David, 2009) With telecommunications advancing constantly, there are advantages to taking such a path in global competition. Direct and indirect advertising, low cost communication, easy access to potential customers, company image enhancement and extending business networks, are some
of these advantages. However, the internet
The Nature of Global Competition
BUS490 – Business Policy
August 21, 2011
Professor Matthew A. Gilbert
Strayer University
Global competition has been a vital reality in successful business since the ancient times. A primary example of global competition from this time is that of the spice trade Asia. Arab traders were mainly the transporters of goods, i.e. the spice trade, through Levant and Venetian merchants to Europe. In 1453, the rise of the Ottoman Turks, they cut the route from Asia to Europe and initially helped the spice trade with overland routes. With more demand for the supplies initiatives needed to be taken, beginning with maritime trade routes, which led to tremendous growth with commercial activities. Hence, the supply and demand of global competition. Advancement in technology throughout the centuries has improved the ability to attain goods and services from all over the world. Global competition has helped to increase the profitability from a small mom and pop business to a large corporation moving into international business. Presently the internet has developed into the primary business tool, not just merely a network used for research. Small and large businesses have been proactive and progressive in seizing the opportunity to become more competitive and productive globally. “Advancements in telecommunications are drawing countries, cultures, and organizations worldwide closer together. Foreign revenue as a percent of total company revenues already exceeds 50 percent in hundreds of U.S. firms, including ExxonMobil, Gillette, Dow Chemical, Citicorp, Colgate-Palmolive, and Texaco.” (David, 2009) With telecommunications advancing constantly, there are advantages to taking such a path in global competition. Direct and indirect advertising, low cost communication, easy access to potential customers, company image enhancement and extending business networks, are some
of these advantages. However, the internet
Cited: Chapman, A. (2004-2009). Porter 's Five Forces Model. Retrieved August 12, 2011, from www.businessballs.com: http://www.businessballs.com/portersfiveforcesofcompetition.htm David, F. R. (2009). The Nature of Global Competition. In F. R. David, Startegic Management: Concepts and Cases (p. 23). Upper Saddle River, NJ: Prentice Hall. Strategies, P. G. (2009). Barriers To Entry. Retrieved August 17, 2011, from www.purposeglobal.com: http://www.purposeglobal.com/en/learn/blog