Opportunities And Threats In Global Market

Opportunities Existing in Global Market

Write an essay on Opportunities Existing in Global Market.

Global marketing is something that is not even known to the world even a few decades ago, but today global marketing is not only known but is very essential for the growth and the development of the organization. Today, if the organizations or the business fails to go global then, it could not sustain for a long time in this competitive market (Lee and Carter 2012). Thus, it is not only essential for the growth and the success of the business but also at the same time the particular thing is essential for the business to sustain in the global market. The companies, which are depended only on the domestic market, tend to lose their customers, not only in the global market but also in the domestic market. Global marketing is not only about products, pricing or about promotions. Critics and scholars believe that it is the willingness of the organization to adopt the global perspective and accordingly they develop their marketing strategy.

Global marketing is an approach that has helped many companies like McDonalds and Coca-Cola to gain success in the global market (Keegan 2016). Mostly universal products like automobiles and things line foods and beverages have the opportunities to gain success in the global market. The global marketing strategy provides the company with more than one opportunity, which helps the company to excel in the global market.
The global marketing strategy provides the company with the opportunity of promoting their products across the boundaries (Alon and Eugene 2012). It is not only product of a company but at the same time, the subsidiaries of the organization get the opportunity to promote them across the boundaries. Along with the products, the ideas of the organization are also transferred across the boundaries.

The population of the world is increasing and along with the increase in the population of the country, the demand of the population is increasing at the same time (Rao-Nicholson and Khan 2016). Therefore, to meet the increase in demand of the population there has been a growth in the marketing opportunities at the same time. The organizations who are going global for them the marketing opportunities in the global market will allow them to grow, and these opportunities would create further opportunities for the organization, in the path of their success.

New technologies as well as innovation, not only create new market but at the same time, new technologies and innovation create new opportunities in the market as well. Therefore, companies coming up with new technologies and innovation could actually, utilize these marketing opportunities, for their growth and success (Frynas and Mellahi 2015). The companies going global with new technologies could actually, gain strategic benefits from these new markets.

The organizations that are going global get the opportunity to reshape their business. The reshaping of the business helps in addressing the challenges that are there in international marketing.

Threats Existing in Global Market

Factors, the indicators like the socioeconomic, or the political indicator helps in detecting the purchasing power that is there in a market. For example, while going abroad or setting up their business abroad, McDonalds make sure to choose those countries that have a lifestyle similar to that United States; this means it chooses those countries where the female workers are more and people have less time to prepare their lunch. The organization going global could actually, use franchise to capture the opportunities that are there in the global market.

The forces such as the demographic, economic, cultural as well as the political forces are the major forces that could either pose a threat or it could create an opportunity for those companies that are going global. The cultural clash and the political atmosphere of the host country could actually be a threat for the organization going global.

The global market is changing constantly and there are companies, who fail to recognize the changes that are taking place. Either the companies ignore or they resist the changes that are taking place in the global market (Hollensen 2014). If the company ignores the changes that are taking place in the international market then it could actually be a threat for the organization. Companies like IBM and General Motors have gone through such threats and bad times because they have ignored the changes that are taking place in the global market.

Several policies and business regulation are being taken by the host countries. The policies and the business regulation not only influence the overseas business but also at the same time, could act, either as an opportunity or as a threat for the organization or the company.
The organization expanding their business overseas face competition both from the global and from the local market; thus it is a threat for the most of the companies, going global (Griffith and Hoppner 2013). The companies going global face challenges because in the workplace there are people of different culture and linguist background. In one host country, more than one culture could reside and this could actually create lots of problem for the organization working in the overseas countries.

The company that is popular in the local market can be turned out as a brand about which people are unaware in the global market. In the host, country there may be other local companies, who are popular among the people and thus it can be a serious threat for the companies who are marketing their products in the global market. Communication on the other hand, could be a serious threat for the overseas expansion of the business by an organization. The communication barriers arises due to linguistic problem, and thus, communication depends more on the style and the facial expression of the speaker (Pawęta and Chiu 2015). Language plays a less important role here, and the body language and the facial expression plays more important role.

Communicating Aspects from Global Marketing Viewpoint

International expansion is something that is not understandable from a very simple perspective. It is neither black nor is it very white in nature, there are many, things that are happening around the globe and thus it is influencing the working of the organizations, and affecting the working of the organization in the overseas countries. Few moves are easier for the organization, whereas, there are few other moves that are difficult for the organization.

Different factors or things should be taken into consideration before the company decides to move its business from the domestic to the global market. The first thing that should be taken into consideration, include the political factors (Czinkota and Ronkainen 2013). The treaties and the policies that are being made by different organization such as NAFTA, ASEAN, EU, and organization such as these; which affect the workings and operations that are carried out in an organization in the global market. Thus, the political factor is the most important factor that should be taken into consideration before considering any other thing.

The next thing that forecast the opportunities and the threats for the organization going global include, the economical factors (De Mooij 2013). The economical factors include the interest and inflation rates; along with it, the tariffs are included in it as well. Most importantly, things like the unemployment rate, and the availability of the labor is taken into consideration. There are things like the local and the foreign economies, which should also be taken into consideration, before entering the global market.

The socio-cultural factors are the most important factors that should be taken into consideration before expanding their business in the global market. The socio-cultural factors include the things like the local languages that are spoken in the host country and thus could create problem for expanding business in the international market (Carpenter, Moore, Alexander and Doherty 2013). Each country has certain dominant religion and at the same time, there is a cultural view of the people as well. Before expanding the business at the overseas market, the organization should be aware of these factors at the same time. It will not only help the company to expand in the global market but at the same time, it would help the organization, to identify both the opportunities and the threats associated with the country. Other things like, the attitude of the people towards things such as consumerism, environmentalism, is important at the same time (Laroche 2014). For instance the growth of the companies like Coca Cola, have increased in the international market, because of the increase in consumerism in the global market.

Conclusion

In the past few years the global market has changed a lot, it has not only opened it up in front of the foreign competitors but at the same time the privatization of the state-run organization have taken place as well. Therefore, today globalization and global marketing is not only helpful for the growth of the organization but at the same time, it helps the organization, to sustain in the competitive market. Both the large and the small size companies, could utilize the market opportunities, and expand their business. Before, expanding their business, although, the company has to make certain research to avoid the risks that are associated with global marketing.

References

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Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.
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