The globalization of markets

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  • Publicado : 11 de mayo de 2010
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The Economic relations between the different nations of our planet are increasingly close and important. This process of global economic integration is known as globalization.
The globalization of markets refers to the union of the different and separate national markets into one global marketplace. (Hill, C.,2009 p. 6) The famous article of Theodore Levitt of 1983,summarize the idea of globalisation of markets that since the world is homogenized the multinational companies became out of date and the global corporations up to date.
When it comes to competition the must effective market are the ones that use products that are globally identical in fashion, design and function; what will make chose one product over other, in this complex rivalry, will be thequality, price, reliability and delivery.
The main strategy of the international markets for expand them as far as possible is the low pricing of the products so in that way the accessibility will be for everyone. (Levitt. 1983 p. 96)
It’s very important to take in consideration that there are many facts that can cost a limitation or problems to achieve the approach of the globalize market, likecultural, technological, financial and regulatory issues.
Levitt in a article for Harvard university in 2003, comment “A global company should always go about its business in a way that's responsive to the major differences from one country to another," in terms of, for example, how retailing or distribution or payment systems work. But the core product or service should remain unchanged, he added,since that is what is "globalized."

International Advertising
         The International advertising depends of the country and the group target, because the perception of the symbols and stimulus are different depending of their languages, culture, psychology, emotions, literacy. Also differs from company to company, their strategy and decision of advertising can vary. “In some cases,multinational firms centralize advertising decisions and budgets and use the same or a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies”
               International advertising can depend of communication process that depends of the type of culture so the terms ofvalues will be different also communication styles, and consumption patterns. International advertising is also a major force that both reflects social values, and propagates certain values worldwide.

Process and stages for achieve an international market
1. Company takes orders but is not interested in exporting, opportunistic behaviour.
2. Company seeks information and assess thepossibilities to export, start exporting to psychologically close countries 3. Export volume grows, it strengthens the ability of the company in the upstream markets, develops a form of permanent presence in the markets 4. Company intends to secure a long-term market
Market concentration, specify the resources 2. Screening group of countries (economic political, geographical, social, barriers to entry,distribution system) to investigate the markets to implement a filtering variables Collect quantitative information indicating the degree of accessibility in the markets 3) Implement a market selection model 4) Evaluation of selected markets regulation Competition cultures and political factors Qualification tax demand

Challenges Faced in Global Strategy

1. Production Factor
Internationalcompanies now have production processes spread all around the world, different parts are products at different places, for example, Toyota have body parts factory at different location in the world, while the engines are made in Japan and supplied to the rest of the world. Issues like war, labour strikes, taxation can affect production process thereby slowing down product.

2. Cultural Differences...
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