Globalization Of Inequality: Issues Faced By Companies In Global Marketing

Issues Faced by Companies in Global Marketing

Discuss about the Global Marketing for Globalization of Inequality.

The article is about the issues faced by companies in the global market. Multinational companies are facing issues in specialized markets. On the other hand, global companies following global marketing tactics are facing problems regarding their sales and product customization. Global imagination of the global companies has faced the barriers of globalization. It is the main issue mentioned by the author that is focused on the article (Bourguignon 2016). Apart from that, there are many examples mentioned in the article that illustrates about the issues in globalization and other techniques opted by multinational companies.

The main purpose of the article is to point out the problems faced by the companies while adopting the policies of glocalization and globalization. The global companies that are unable to use the technologies in a proper way have witnessed failures in their product customization and sales level. Getting global is not an easy task. It requires covering many aspects such as a bunch of rules and regulations of the host countries as well as target countries including the taste preference of that particular country (Arellano-Gault et al. 2013). Globalization and glocalization are the strategies that go side by side if they are properly utilized according to the consumer preference. The twin vectors of globalization and technology are the points of concerns of the global companies. It is the major issue mentioned in the article by the author.

The author uses many examples and other information regarding strategies of globalization and glocalization by both global companies and multinational companies. Examples of Companies like PepsiCo, Coca Cola, McDonald’s, General Motors, Hoovers Ltd, etc. are mentioned in the article regarding the  relationship to the issues of globalization. The issue is also focused to the changed customer preference and taste in the modern world. The companies for product development not only use technologies and other operational procedures, consumers in different parts of the world are also using technologies. Way of using technologies by consumers is different and the purpose is different. People want what they actually see. It is the responsibility of the companies to identify the hidden desires of the customers. Failure of satisfying the demands is the big problem for the company (Yuan et al. 2013).

Author has provided the solutions to the companies that are facing issues in entering to European market in the form of conclusion. The vectors of globalization and technology determine the future of the global companies while expanding their market in the untapped countries. According to the author, companies become victims of failures if they do not adapt the new realities of global markets (Kim et al. 2013). The global realities include economic realities and human preferences. Convergence and divergence of different forms of markets leads to reduction of various aspects such as prices of products to customers and manufacturing costs.

Strategies of Global Companies in Going Global

The implication of the conclusion to the companies mentioned in the article such as General Motors is well explained by author. Model T has faced many issues in the markets such as in Japan. There are many imitators of the Model T in the Japanese market. Model T by General Motors had manufactured the model based on their host country i.e. European market. The company tends to go global and seek to standardize their products by offering their product in every market irrespective of the requirements of the customers of their target market (Rodriguez 2015). The negative aspect of the global companies is not considering customers as king rather they want to create needs of their product in the target market (Shami et al. 2014). The companies face troubles when they remain unfocused and inattentive towards the global needs and economic standardization and simplicity. With the rapid development of the small domestic companies in the countries, the global companies in many cases face tough completion.

The companies use the concept of adapting the features of globalization and technologies in order to gain success in the long-term success of the parent company in the global markets. Strategies of global companies in going global are different from that of the multinational companies adopting strategies of glocalization. The concept of Hedgehog knows and the author in the article to describe the issues of globalization faced by various companies mentions the fox. In this case, fox is considered as the multinational corporations that have the knowledge of many countries regarding tastes and preferences (Bourguignon 2016). On the other hand, global companies are compared to the Hedge Hog, as it knows everything about a single thing. Global companies seek their working procedure towards convergence in the global markets.

Author’s point of view lies in the fact of lack of proper understanding of the heterogeneous market worldwide. Consumers of specific markets do not adopt high-standardized products in many aspects. This happens because they somehow do not match the needs of the consumers. On the other hand, Multinational organizations enable nations and people in order to optimize their products and market conditions by using the median of money. Both tangible factors and intangible factors come into existence while taking any decision regarding the volume and cost of production of goods in any foreign markets. In this case, the customs, culture and the nature of purchasing of the goods come under consideration (Kannan 2015). Computer aided production of goods are also mentioned in the article that modern companies are using in order to incorporate new features in the products they are selling in respective markets.

Glocalization vs Globalization

In the article, author assumes that the companies should follow glocalization rather than globalization in order to achieve success in terms of profitability and sales volume in the companies in the target market. The companies must treat the companies as two or more markets that are distinctive related to products so that the companies can serve the population of the world in more economical way. Mistakes happen, when enterprises treats the world market as four to five distinctive markets. Assumption of author in the article focuses on the massive production procedure of the company that has not adopted the automation of products still now while serving the global markets by satisfying the needs of the customers (Audretsch et al. 2014). Preferences of customers are more highlighted in the article by the author, as it leads to more sales of the products as well as the increased reputation of the products.

The issue of globalization has much significance. By reading the article, the viewers can gain an understanding of the problems that are faced by companies on a regular basis by the famous companies worldwide. It is also mentioned in the article that competition of big giants are not only from other global companies but also from the small companies in the domestic markets. While creating a new market regarding a particular product, there is a chance of the not accepting the new products by the consumers of that specific market. There is a clear description of the issues so that viewers will implement the remedies of the issues in the practical world. Apart from that, there are many economic problems faced by global companies in many countries. As they are not adopting the procedures of customization, hence in the manufacturing process economies of scale and economies of production are not properly maintained in many cases (Lim and Tsutsui 2012). Minimal customization along with breadth of narrow product line will lead to less cost when compared to companies that are adopting wider lines and more processes of customization.

Author has mentioned some potential problems in the article. Author has focused only the issues of adopting technologies and economies of scale in the target markets. It is mentioned in the article that the Japanese automobile manufacturing companies by adopting globalization has not acquired much successes in the countries like Europe and America. There are rules of left hand driving and right hand driving in many countries. Japanese automobile companies are not ready to change their modes and designs of cars according to the regulations of their target market. The information are irrelevant, but are not discussed in a detailed format. Author has discussed it in a single format of regarding technology and glocalization processes (Louhiala-Salminen and Kankaanranta 2012).

Consumer Preferences and Sales Volume

Apart from glocalization, there are many reasons such as political, legal and other environmental factors that companies have to take into consideration while expanding into foreign markets. Regulations of government are more important that technological factors because the first criteria of a company to enter into a new country is fulfilling the trade regulations of the government as well as other rules of doing business. It may also hamper various current businesses processes of the company (Smith 2015).

Modification and customization of the policies are not only depended on cultural factors but also depended on legal and political factors that is very important. I agree to the viewpoint of the author and the information provided by the author related to the topic of issues of globalization. However, in many cases author has missed some of the topics, I have mentioned above which are vital for the companies that are expanding their market. In my viewpoint, some other aspects are equally important to that of the glocalization and globalization strategies.

References

Arellano-Gault, D., Demortain, D., Rouillard, C. and Thoenig, J.C., 2013. Bringing public organization and organizing back in. Organization Studies, 34(2), pp.145-167.

Audretsch, D.B., Lehmann, E.E. and Wright, M., 2014. Technology transfer in a global economy. The Journal of Technology Transfer, 39(3), pp.301-312.

Bourguignon, F., 2016. The Globalization of Inequality. Cyrus Chronicle Journal, 1(1), pp.63-65.

Kannan, V., 2015. Globalization and Government Regulations: Invasive Species Management in an Era of Interdependence. A publication of the Critical Writing Program The University of Pennsylvania 3808 Walnut Street Philadelphia, PA 19104-6221, 27(4), p.8.

Kim, S., Vandenabeele, W., Wright, B.E., Andersen, L.B., Cerase, F.P., Christensen, R.K., Desmarais, C., Koumenta, M., Leisink, P., Liu, B. and Palidauskaite, J., 2013. Investigating the structure and meaning of public service motivation across populations: Developing an international instrument and addressing issues of measurement invariance. Journal of Public Administration Research and Theory, 23(1), pp.79-102.

Lim, A. and Tsutsui, K., 2012. Globalization and commitment in corporate social responsibility cross-national analyses of institutional and political-economy effects. American Sociological Review, 77(1), pp.69-98.

Louhiala-Salminen, L. and Kankaanranta, A., 2012. Language as an issue in international internal communication: English or local language? If English, what English?. Public Relations Review, 38(2), pp.262-269.

Rodriguez, C.C., 2015. The dilemma of inclusivity in the globalization of academia. Cultural Studies of Science Education, 10(4), pp.1057-1062.

Shami, N.S., Box, N., Fort, T. and Gordon, M., 2014. Designing a globalization simulation to teach corporate social responsibility. Developments in Business Simulation and Experiential Learning, 31.

Smith, J., 2015. Exploring connections between global integration and political mobilization. Journal of World-Systems Research, 10(1), pp.255-285.

Yuan, Y.C., Zhao, X., Liao, Q. and Chi, C., 2013. The use of different information and communication technologies to support knowledge sharing in organizations: From e?mail to micro?blogging. Journal of the American Society for Information Science and Technology, 64(8), pp.1659-1670.