Globalization and the Internet
Today’s corporate world faces challenges of globalization and the Internet. Globalization is “the integrated internationalization of markets and corporations” (Wheelen & Hunger, 2010, p. 8). Wheelen and Hunger (2010) describe Thomas Friedman’s belief that because of globalization, “jobs, knowledge, and capital are now able to move across borders with far greater speed and far less friction than was possible only a few years ago” (p. 8). Some examples of globalization’s impact on the corporate world include increased competition and employment, new investment opportunities, the flow of foreign capital, expanding foreign trade, and the spread of technical know-how and education (Kulkarni, n.d.). As for the impact of the Internet, because of its universal accessibility, consumers have become more educated about the purchases they make and the services they need or utilize. Companies have to become even more consumer-oriented in the products and services they offer. Moreover, the Internet serves as a useful tool for the growth and viability of companies. For example, Wheelen and Hunger (2010) note that “the worldwide availability of the Internet means that companies can now locate anywhere and work with multiple partners to serve any market” (p. 8). Some businesses, such as Amazon and Overstock.com, have even decided to operate completely online to reach customers across all borders. As more industries incorporate globalization and the Internet into its business practices, “strategic planning is becoming an increasingly important way to keep track of international developments and position a company for long-term competitive advantage” (Wheelen & Hunger, 2010, p. 8). For instance, companies are now deciding to outsource their resources to foreign countries to reduce costs and increase profits. With such tools as the World Wide Web, businesses are able to instantly connect with consumers and compete with other industries in not only national markets, but on a
References: Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business policy (12th ed.). Alexandria, VA: Prentice Hall.
Kulkarni, A. (n.d.). Positive effects of globalization. Retrieved from http://www.buzzle.com/articles/positive-effects-of-globalization.html