Smart Globalization

Essay by PaperNerd ContributorUniversity, Master's October 2001

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SMART GLOBALIZATION This article is very informative on the subject of Internationalization. The article begins with a brief description of a common commercial airing on TV about Whirlpools new washing machine. The add is targeted towards Indians in India who "prize hygiene and purity"¦" Whirlpool Corp. is a U.S. based company, but that doesn't mean they can't find new and emerging markets abroad. Before they made the decision to internationalize their product, they had to research and analyze their potential market. By doing this they learned what the consumers in that particular nation/region/society needed.

What amazes me is that Whirlpool arranged an integrated network of smaller less efficient factories and companies to distribute/market before deciding to go ahead and start building factories. Going abroad means taking risks. Why not take smart risks.

The article then goes on about AT&T and why their ventures abroad fizzled. They basically fizzled because the old approach of internationalizing was too simple and not in depth enough for today's emerging markets. Companies have changed their outlook on this new concept of Smart Globalization. "Companies are trying to figure out how to build on their strengths as opposed to throwing "¦Hail Marry passes in the hope they connect".

Products in a new market have to be adapted sometimes. A good example of this is how HP has involved itself in the development of technology in poor nations such as Africa. Before HP could start selling it's product they basically had to integrate the technology that could be available into small villages and communities. They did this by setting up small centers where people could learn more about what was going on in today's hi-tech information age and get a hands on experience. By introducing the technology to these people who never seen a computer before...