3 April 2013
Why go global?
It is quite obvious nowadays that in order to maintain a competitive edge companies should expand internationally, if they do not do it, their competitors will. The competitors will get everything: new customers with high spending power, skilled and talented employees, and increase in profit, etc. According to Richard Parsons, “Business has to scale up to meet the demands of this global market. The scaling-up process is unavoidable” (“Why go global? 6 benefits of international expansions”). We live in a constantly changing environment and for companies it is crucial to have an opportunity to reach their clients regardless of their country of origin.
First reason why companies should go global is that they will enlarge their client base. According to Stephen Johnson, “The United States has roughly 4% of the World’s population... India has 17%, China has 19%, and Southeast Asia as whole has 9%” (“Why go global? 6 benefits of international expansions”). Moreover, the States currently holds about 1/3 of the global spending power, let alone European countries with high demand for new products. In some cases, companies have to follow their partners over the borders.
Secondly, the companies going global, will get the access to foreign skills and expertise, which is nowadays quite a valuable asset. International skills can bring a lot of innovations into the company, moreover, since local people know the peculiarities of their own market perfectly well, there will be no obstacles for a company to find a niche and to become even a key player later. Taking Apple as an example, it is clear that its employees come from different backgrounds, Steve Jobs even told President Obama that it is not possible to find 30,000 talented engineers in the US and he had to hire foreigners.
Thirdly, is that it is undoubtedly increase sales, thus increasing company’s profit. People are ready to...