I. Introduction to globalization
Globalization: reflects the trend of firms buying, developing producing and selling products and service in most countries and regions of the world.
Benefits for the firm which do an international expansion:
New and potentially more profitable markets
Increase the firm’s competitiveness
Facilitates access to new product ideas, manufacturing innovations and the latest technology
Internalization: doing business in many country of the world, but often limited to a certain region (ex: Europe).
A. Industry globalism
The strategic behaviour of firms depends on the international competitive structure within in industry.
In the case of high degree of industry globalism, there are many interdependencies between markets, customers and suppliers, and the industry is dominated by a few large powerful players (global).
Example of global industries: PCs, IT, records, movies and aircrafts.
The other land (local) represents a multidomestic market environment, where markets exist independently from one other.
Example of local industries: hairdressing, foods and dairies.
B. Preparedness for internationalization
The degree of preparedness is dependent on the firm’s ability to carry out strategies in the international marketplace and the actual skills in international business operations.
The well-prepared company has a good basis for dominating the international markets and consequently it would gain higher market shares.
Preparedness for internationalization Mature
Enter new business Prepare for globalization Strengthen your global position Adolescent
your export markets Consider expansion in international market
Seek global alliances
Stay at home
Seek niches in international markets Prepare for a buyout
II. Development of the “global marketing” concept