Business Management:Globalization of Markets

Globalization of Markets

Introduction

Globalization in business is considered as the integration of the global markets. This is the tendency of the international trade and investments to control the economies of different countries together. Globalization means that the firms are highly internationalized and that they have an increased penetration to the national markets with increased integration and coordination of resources and activities (Levitt, 1993 P .249). Globalization has been accredited to distribute wealth to the less developed countries. Globalization has encompassed a variety of economic and business practices that have been accelerated by information technology for dynamic capabilities in business strategies (Hall, 2004). The main aim of globalization has been to ensure that organizations have a competitive advantage through low operating costs, increased number of products and services and diversification that will enhance more consumers.

Globalization of Markets

The globalization of markets has made most international companies to evaluate their international advertising strategies and also adopt global marketing strategies. Globalization has changed the nature of marketing and production relations. New production in the current technology-driven market has led to great risks. It has been understood that the idea of globalization in the current competition has led to the fruitful companies changing from tailored marketing mix to specific marketing strategies for different countries (Neary, 2003 P. 252). Globalization has led into the companies looking into more than the basics of low cost and quality to excel in multinational markets in the high competitive environment.

Globalization has been linked to major drivers that include technology, transportation systems, and the social, political reforms. Technology has been the major reason behind increased globalization. Through advancements in information technology and increased information flow across borders, there has been more information about the investment opportunities and economic trends. Technology has also made easier to transact financially and also increase investment abroad. Transportation systems have allowed quick and affordable migration across the globe.  The enormous growth in population and consumers around the countries have created new opportunities due to customers around the globe. Reduced tariffs have enhanced free trade agreements. There are other factors such as location, stage development, and demography that have varied between countries.  These have led to the difference in the cost factors of labor, production, land, and capital.

Technology

Technological advancements have led to major improvements in the global connectivity. Technological advancement has been the main reason as to why globalization has escalated in the current world (Hrynyshyn, 2002 P. 90). Technology has been the main driving factor in globalization and has played a major role in globalization. Information technology has made a great advance in the recent years as related to the internet. Communication technology has revolutionized communication around the world from the mobile phones to the GPS. Transportation technology has grown focusing on comfort, affordability, speed and environmentally friendly. For instance, technology has changed globalization regarding agriculture, finance and production line. One of the most influential changes in information technology has been communication which has enabled sharing of information from one country to another. This has enabled people to connect with different localities and has also facilitated access any information.

Transportation has increased dramatically due to advanced technology (Hummels, 2007 P .135). Cars have been built to be fuel efficient, move faster and cheap to run. Airline transport has also enhanced trade across continents due to the ability to move large population across the globe. Supertankers have also increased the scale of trade among countries. Massive container ship has enabled carrying of greater quantities of goods which have enhanced globalization of trade.  Innovations in transportation have been facilitated by information and communication technology (Aggarwal, 2011 P .90). For instance, larger container ships, aircraft, the use of GPS, computers and navigation systems to function. There have been attempts at technology to make transport more affordable. This has included environmentally friendly transportation through utilizing electricity, ethanol fuel, and solar power. Therefore, technology has had a great impact on globalization regarding information and communication technology and transportation systems.

Apple Inc

The company is a computer hardware industry that has technology as its main factor. Technology has a great impact on the success of the company (Cusumano, 2008 P .23). The company has innovation progress that has provided faster, better and cheaper electronic products. Technology has enabled the company to acquire its market segments as new markets and products are being created. Due to constant technological advancements, the company has been one of the most unpredictable companies in the world. The company has been able to appeal its customers due to the reputation for impressive technology breakthroughs (Cusumano, 2008 P .22). The company has utilized information technology to manage their focus on targeting their consumers.

Technology has also facilitated the effectiveness of the supply chain. Transportation costs have decreased due to improved communications with the help of technological advancement. This has resulted in speeded information flow and efficient transportation of goods across the nations. The internet is considered a network of computers that have been connected through the global telecommunications. The internet has facilitated the worldwide web which is a collection of documents that have been interconnected and are accessible through the internet.  This has enabled people all over the world to access information and research more about the products they are interested in.  The company has been able to advertise their products through the internet. This has improved the marketing advantage for the company due to available information to their consumers about their products. The internet has been able to bring the current news and events to the people.

The internet has played a role in connecting the world and making it a global village. This has enhanced globalization of the company’s markets through advertising, marketing, sale and accurate information for production. The company has been able to achieve an impressive supply system through communication and information technology that has enhanced reaching different suppliers for low-cost purposes (Bailetti, 2012 P .5).  The company has remained the leading in computer hardware and software products due to the utilization of technology. Apple has created a market for things that people never thought of their existence through the use of technology. This has been through disrupting the iPhone and PC markets being the major contributor to their success. This has increased their competitive advantage and increased markets. This has made Apple win their markets due to technological advancement in their products as a major contribution.

Inevitability of globalization

Globalization is a secular trend and a long-term interdependence and interpenetration of the world’s economies (Intriligator, 2004 P .490). The production process and markets have developed in the recent centuries due to globalization which has led to increased linkages.  The reason as to why globalization is inevitable is because it is a process of human civilization. It has been a transformation of the local and regional trends into global trends. It has enabled people to get more variety, quality and better products at low prices. For instance, the internet has led to E-commerce which has enabled conducting business through electronic communication through networks such as the internet. The spread of information through technology has reduced the cost of production. It has contributed to increased growth such as expansion and increased technology, advances in transportation and communication, growth in consumer pressures and expansion in cross-national cooperation. Those are the reasons as to why globalization is inevitable.

Conclusion

Globalization has led to continued competitive pressures in the world.  It has been easier to approach markets and manage production activities for companies through globalization.  Globalization has been led by certain drivers that have brought new opportunities and threats. The modern business has included globalization of markets and production. New technology, efficient communication, and increased profit demands have led to short product life cycles that have led to inherent risk. Responsive and timely product development has been more critical due to the highly competitive environment.   Therefore, globalization is inevitable due to its increased benefits in the international markets.

 

 

References

Aggarwal, R., 2011. Developing a global mindset: Integrating demographics, sustainability, technology, and globalization. Journal of Teaching in International Business, 22(1), pp.51-69.

Bailetti, T., 2012. Technology entrepreneurship: overview, definition, and distinctive aspects. Technology Innovation Management Review, 2(2), p.5.

Cusumano, M., 2008. Technology strategy and management The puzzle of Apple. Communications of the ACM, 51(9), pp.22-24.

Hrynyshyn, D., 2002. Technology and globalization. Studies in Political Economy, 67(1), pp.83-106.

Hummels, D., 2007. Transportation costs and international trade in the second era of globalization. The Journal of Economic Perspectives, 21(3), pp.131-154.

Intriligator, M.D., 2004. Globalization of the world economy: Potential benefits and costs and a net assessment. Journal of Policy Modeling, 26(4), pp.485-498.

Levitt, T., 1993. The globalization of markets. Readings in international business: a decision approach, 249.

Neary, J. P. (2003). Globalization and market structure. Journal of the European Economic Association, 1(2‐3), 245-271.

Hall, D., 2004. Business studies. Pearson Education India.