As most of the population of the earth knows, the world is facing an economical recession, the so called “global crisis”. From aneconomic point of view, this problem has reached all of us, meaning sellers and consumers. But how exactly the financial crisis has affected international marketing?
Instability of currencies and prices,and lower levels of demand tend to stop companies for going global. Like with any kind of business, uncertainty plays a major role in the process of a company’s expansion, but this uncertainty growswith the current situation. Forecasting the success of the company has turned more complicated. Companies think more than twice when expanding to other countries. Mainly because the risk is bigger.Why? In a macroeconomic view is simple, unemployment levels are rising meaning that less people is working, which leads to less consumption, demand decrease and so forth.
Another aspect that isaffecting companies is competition. With the current situation big companies want to gain more ground leaving helpless the small companies that want to go international. Companies during these hard timesshould focus better in adapting strategies to overcome the situation. Companies with a wide variety of products should higher their quality and try to keep the same prices, or even lower them.Considering new distribution channels that can be more effective can also be helpful the company.
Young companies are not the only ones affected by financial crisis; mature companies with a good reputationand long trajectory are also facing difficulties. One example is the Absolut Vodka. This vodka is considered as a high quality vodka and the price range is about 18-22 Euros. Its publicity is knownall around the globe because of its peculiarity, ingenuity and creativity. Seems like everything is perfect for Absolut. The problem is that due to the financial crisis, people are changing to...