University of PhoenixJune 26, 2009MKT/421Globalization is the process that involves increasing of goods and services worldwide. The technological advances that have been made during the last two decades have made globalization of businesses simpler Investor Words (2009).
According to Theodore Levitt (1983), the emergences of global markets have greatly increased due to the advancements of technology, communication, transportation. Corporations that are prepared for the new reality will benefit from large economies in production, distribution, marketing and management, which translate into reduced world prices that can defeat competitors that remain believing in the assumptions about how the world market works. An organization does not globalize alone and not all companies have the capability of going global. Companies must possess that determine the potential for industry globalization, and those are Industry Globalization Drives. Global markets have four broad groups of industry globalization drivers which are market, cost, government and competition. The four sets of drivers cover all important industry conditions that would affect a company's potential for globalization.
Many drivers are out of the company's control in the worldwide business.
Every company in every industry has a level of globalization potential that can be determined by external drivers.
Strategy for Global CompetitivenessIndustry research conducted in past has shown results that prove that competitiveness depends upon internal and external factors. It also depends on the macro-environmental factors such as the policies of the home country Government (whether favoring competition, support offered to the industries in terms of taxation, rebates and incentives, fiscal and credit policies, etc.), the degree of consumerism in the home country, the nature of competition. According to Hoff, Fisher, & Miller (1997), competitiveness exists in all countries, markets, organizations and all industries. The relationship between competitiveness in organizations, markets and industries are not completely understood. While economists have not determined...