The words globalization and internalization have been used interchangeably. However, researchers in international business would compare between two and view them as important quite various approaches to performing outside of domestic borders says Paul (2010). The appropriate approach to globalization must depend on the extent to which there were:
- Pressures to be responsive locally, adapting and adjusting a service offer to local requirements.
- Pressures to combine tasks across markets i.e. pressure to exploit scale economies and provides a similarly standardized product which leverages across specific competences or assets.
Essentially a global strategy represents on combining tasks of business across markets to ensure higher efficiency in differences of operations between markets tend to be discounted and the pressure to be responsive locally is assumed to be weak. If the marketing models and schemes or strategies can be exchanged from country to country with very little adjustment, the global strategies application will be simple and the quicker pace of globalization (Maxwell, 2009).
Rather than focusing on available differences in requirements of customers, a global strategy focuses on similarities and sees various international markets as being homogenous essentially. Typically such a strategy is associated with manufacturers of highly standardized physical goods and enhances scale economies in marketing and production. In several senses, it is critical for financial service provider to be global truly because regimes of regulatory differ around countries and limits the true standardization extent. However, in retail markets such as Citibank and HSBC are arguably following something close to a global strategy with recognized global brands and strong presence worldwide.
In corporate markets, Tokyo Mitsubishi, with its diversified global network and capability to offer a full range of services to customers worldwide, is probably also following something close to a global strategy.
- Maxwell I (2009), “Managing Sustainable Innovation: The Driver for Global Growth”, Springer, USA.
- Paul J (2010), “Business Environment”, Tata McGraw Hill, New Delhi.
- How do organizations implement communities of practice? - July 30, 2012
- Why leaders who control do not succeed? - June 5, 2012
- What is inter-organizational conflict? - May 26, 2012
- What is supply chain management? - May 8, 2012
- What is a global strategy? - May 4, 2012
- How is CSR important to organizations? - May 1, 2012
- What is an electronic market? - April 5, 2012
- How to construct an efficient online recruitment system? - March 28, 2012
- What is Customer value creation? - March 26, 2012
- How to compose your essay? - March 4, 2012