Born Global Company
BORN GLOBAL COMPANY
Introduction
Many business started to aim at the international market with the development of the globalization. This emerging phenomenon are worthy for us to analyze and research. We should think about why the Born Global Company emerge and the characteristics of the Born Global Company.
What is a BGC?
McDougall says “Born global company refers to the business organizations that, from inception, seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries ”[1] A more quantitative definition, from another source, describes born globals as “companies who have reached a share of foreign sales of at least 25 per cent within a time frame of two to three years after their establishment”. [2] Born globals tend to be at a young age, medium-sized, which is obtaining a sustainable part of revenue from the sale of outputs in foreign countries. Also, there are many agency has investigated the how young the global born company is. However, they have found that the average age of the global born company is within three years. The global business is on a developing stage. According to the statements, the born global must be a young firm who has gained a portion of revenue from exporting their products.
There are four reasons about why the global born company emerge. • The niche market • Entrepreneurship • International management experience • Net work
The first one is the niche market. That the some organization realized that their resources and market are limited, which often happens in the countries with small domestic markets. They need to develop and focus on strategies to achieve international marketing goals to enlarge its market and make more profits. The niche market is crucial for the born global firms. The more accurate market they focus on,the more market share and more leading position they will get.[3]
The second one is the entrepreneurship. Entrepreneurship is always among
Introduction
Many business started to aim at the international market with the development of the globalization. This emerging phenomenon are worthy for us to analyze and research. We should think about why the Born Global Company emerge and the characteristics of the Born Global Company.
What is a BGC?
McDougall says “Born global company refers to the business organizations that, from inception, seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries ”[1] A more quantitative definition, from another source, describes born globals as “companies who have reached a share of foreign sales of at least 25 per cent within a time frame of two to three years after their establishment”. [2] Born globals tend to be at a young age, medium-sized, which is obtaining a sustainable part of revenue from the sale of outputs in foreign countries. Also, there are many agency has investigated the how young the global born company is. However, they have found that the average age of the global born company is within three years. The global business is on a developing stage. According to the statements, the born global must be a young firm who has gained a portion of revenue from exporting their products.
There are four reasons about why the global born company emerge. • The niche market • Entrepreneurship • International management experience • Net work
The first one is the niche market. That the some organization realized that their resources and market are limited, which often happens in the countries with small domestic markets. They need to develop and focus on strategies to achieve international marketing goals to enlarge its market and make more profits. The niche market is crucial for the born global firms. The more accurate market they focus on,the more market share and more leading position they will get.[3]
The second one is the entrepreneurship. Entrepreneurship is always among
References: [1].McDougall and Oviatt (2000), “International entrepreneurship: the intersection of two research paths”, Academy of Management Journal [2].McKee, D., Conant, J., Vanesa P.R [3].David, C. and Farley, J. (1998), “Measuring market orientation: globalization and synthesis”, Journal of Market-Focused Management [4] [5]. Bell, J. (2003), Towards an Integrative Model of Small Firm Internationalization Journal of International Entrepreneurship [6] [7]. Saarenketo, S. (2002). Born globals - Internationalization of small and medium-sized knowledge-intensive firms. [8]. Servais, P. & Rasmussen, E.S. (2000). Different types of international new ventures, paper presented at the annual meeting of academy of international business [9]Youting Z [10]. Garten, J. (1997), The Big Ten: The Big Ten Emerging Markets, Second Edition [11]Oviatt, & McDougall (1995) [12]. Gray, B. (1997), Profiling Managers to Enhance Export Promotion Targeting, Journal of International Business Studies