Phase 5 Individual Project Assignment Example | Topics and Well Written Essays - 2250 words

Phase 5 Individual Project - Assignment Example Analyzed from a business perspective, globalization refers to the process in which domestic companies seek international markets to expand their operations (Intriligator, 2003). According to Michael (2003), globalization of a company is a powerful trend in the current global competitive market and is one of the major factors that influence the future growth of a company. Globalization of the world economy has made the world become a global village where anyone can get whatever he wants from any part of the world. Today a company’s employees, competitors and customers can come from any part of the globe. In addition to increasing the market, globalization has led to the development of many companies both local and multinationals and invention of new products, this has made the market to be very competitive and a number of companies find it hard to survive (Collier & Dollar, 2002). The following discussion will present the importance of globalization, expected challenges and exp lain why the company should go global. 2.0 Globalization of company’s operations Globalization of the world economy has increased both bilateral and international trade thereby opening up many countries for companies to venture into. Many companies such as our competitors have expanded their operations to overseas markets and have reported significant success in those markets. Before venturing into new markets especially foreign, it is important to have a perfect strategy that will help the company take over the market with ease. With our global market strategy in place, the company can adopt both cost leadership and product differentiation in order to properly position its products well in the market. Cost leadership strategy is the one being applied by our competitors and they have reported good performance with it (Britt, 2007). Over the last two decades, companies all over the world have gone global a move that is threatening the survival of the local companies. This has made it hard for these companies (local) to expand their operations and even some lose their market share. This is clearly evidenced in the company’s analysis report that reported a decrease in the company’s sales volume as a result of the move taken by competitors who have already ventured into foreign markets. In order to compete fiercely and regain its market share, the company has to outdo its competitors which mean engaging in aggressive expansion and marketing programs which will lead to the growth of the company. According to Mike Myatt, Chief Strategy Officer of N2growth, he states that the ability to do business in international market is an important necessity if one is to remain competitive in the current market. Operating a business in the international market is both a defensive and offensive play. Comparing the international market and the domestic market, it is with no doubt that international market is wide and majority of potential customers are living abroad (Myatt, 2009). Considering the move taken by our competitors and the success they have recorded in foreign markets and the dwindling sales in the local market, it is paramount for the organization to go global. 3.0 Rationale for globalization Globalizing a company’s operations in the current competitive environment is one of