Introduction
The development and growth
of the business are not solely based on achieving profitability and
productivity. However, it is also based on the country's prosperity. Overall,
it promotes the gross domestic product, and market globalisation has actually
ensured that people living all over the world accept any product or service
they require or demand from any part of the world.
In this regard, the essay
will include the concept of globalisation as well as the significance of market
globalisation. There will also be a historical perspective to help understand
the emergence of globalisation. Following that, the essay will include a
detailed SWOT analysis of market globalisation to help readers understand the
strengths, weaknesses, opportunities, and threats associated with market
globalisation.
Taking this into account, there will be recommendations and suggestions at the end of the essay for the
globalisation of the market after analysis. Since it can provide some of the strategic
steps to take for the prosperity of business and the global economy.
Globalization – Definition
The ability to produce and
sell goods and services on a global scale while engaging in open competition
with other business organisations is referred to as globalisation. This
indicates that the foundation of globalisation is having businesses operate on
a global scale, selling goods and services that are best suited to meet the
needs and demands of customers.
Since it can be argued that
the company is the best fit in the market once the good or service is suitable
for the customer. Therefore, a company that pledges to deliver better services
and goods in response to customer needs and demands is the most suitable
company globally to provide the best. Because of globalisation, goods and
services are accessible anywhere in the world without regard to national
boundaries.
Therefore, despite having
boundaries to reach the goods and services, the concept reflects the decrease
in distances. Thus, in today's world of globalisation, it is the most suitable
company that provides the best quality of goods and services to its customers
while also respecting their needs and demands.
Globalization of the markets - concept analysis
This century's emerging
idea of market globalisation has a greater impact on institutions that handle
economic transactions as well as a variety of different business players.
Additionally, it demonstrates various difficulties and established standards of
behaviour along with various consumer mindsets all over the world. However,
there are various opportunities for the business, one of which is to be ready
for the proactive and forward-thinking outcomes of the globalisation of
markets.
Since it is based on the
expanding interdependencies between the economies of the world's manufacturing,
trading, and investment opportunities. The volume, height, and intensity of
international business transactions, as well as their financing, are
increasing. Consequently, a sizable number of players in the business world are
present all over the world to offer various goods and services.
The market has become more
international as a result of technological advancements and the proliferation
of products. Simply put, a variety of industries, such as biotechnology,
medical imaging, composite material process innovation, and robotics, have
emerged as a result of market globalisation in recent decades. After the end of
the world, momentum continues to build. Since the market has become more globalised, e-commerce has
also been taken into consideration.
The use of electronic
commerce has made it possible for businesses to expand more quickly and adopt
better development strategies. It is based on concepts that give them the
chance to pursue marketing strategies that are crucial for the development of
the company. These strategies are centered on advertising products using
electronic commerce channels like television, magazines, and the internet.
Therefore, the market's
globalisation has turned into a difficult but intriguing opportunity for
business organisations to conduct business on a global scale. It is known as
the internationalization of cross-border transactions. It implies that there
are various facets of economic activity where businesses may direct their goods
and services.
When it was adopted – Analysis of the historical perspective
Globalization is not a
novel idea; it has existed since the dawn of civilization when goods were
traded with neighbors. As a result, culture advanced wherever people could
travel, use voice technology, and find desirable goods. The Silk Road, another
early example of globalisation, was an ancient trade route connecting North and
East Africa with South and Central Asia and the Far East.
It shows that there has
been trading between European nations and their manufacturing goods for more
than 1500 years, during which time silk and spices from China have been traded
all over the world, or at least between Europe and Asia. The transfer of
animals, plants, cultures, foods, and ideas began after there was exploration
toward globalisation on a larger scale in the area that was known as Columbian
globalisation.
A triangular trade network
was in place to allow manufactured goods to be transported across the globe,
from Europe to America and from Africa to America. The celebrity phenomenon
that spread across Europe, a prime example of globalisation, allowed people to
connect while offering services in various areas.
With the rapid advancement
of communication, the globalisation of the market also advanced to the point
where there was communication between the business and customer awareness.
Consequently, there was an increase in the demand for various goods and
services. Due to the globalisation of the market, it became a potential driver
of business growth on a global scale.
In the 20th century, there
were the use of electronic commerce, television, and internationally published
newspapers and magazines, which were available to customers all over the world.
In the 21st century, market globalisation was adopted. After that, the era of
the Internet and the advent of social media occurred, and the market began to
globalise more quickly.
Consequently, it was
created and developed in the 20th century. However, as it gains a better
understanding of mass marketing and business organisations,
its impact grows. The business has adopted a mass marketing strategy in
response to the globalisation of markets. It illustrates the concept of
marketing to various customers all over the world.
Since it was based on
comprehending the idea, which is entirely dependent on having a sizable number
of customers, who may be located anywhere in the world. As a result of the
globalisation of markets, the majority of businesses, like Unilever, opted for
mass marketing, using a variety of channels to draw in a large number of
consumers.
Importance of globalization of markets
The market's globalisation
provides businesses with opportunities and a competitive edge while also
enabling them to access less expensive raw materials. Globalisation today is
based on the idea that businesses can benefit from the lowest labour costs
possible in developing nations while utilising the technical know-how and
experience of the majority of the developed countries.
Businesses are moving
toward producing goods to be distributed globally as a result of the
globalisation of a market. Consequently, there are franchises and branches of
the companies in various parts of the world.
Example
Since the automotive
industry has been using the globalisation of markets, for instance by stating
that car manufacturing has been done in various countries, for a longer period
of time. Although it was primarily carried out in
developed nations, the fact that the car's component parts were available
everywhere led to the majority of other businesses getting involved in order to
become globalised and participate in the market.
Globalization has a greater
impact on services than it does on simple products like food or clothing, which
are produced by companies in various countries. The idea that various
businesses with locations in different nations have outsourced the services of
the people residing all over the world has been included in the globalisation
of the market. The United States is a signatory to the North American Free
Trade Agreement, which allows for the provision of services by call center
representatives managing accounts using information technology.
Market globalisation is
very significant for all markets worldwide. It is not just based on increased
competition between various business organisations. However, it also requires
organisations to have a competitive price and to be productive enough to meet
the needs and demands of customers around the world. Due to the lack of other
options and the vast social media network that is now present online, the
production of goods and services has traditionally not been based on the
preferences of the public. Instead, the public in every demographic area has
been provided with the produced goods and services that have been well received
by the public.
Now that communication and
technology have advanced, customers can review the various goods and services
provided by individuals. So they have the choice to either appreciate or
disregard the product or service. As a result, business competition has
increased, and consumers are no longer just gravitating toward the best product
or brand. But, they seek out something they adore or that will also be
convenient for them. It also takes into account the product's affordability and
dependability.
This is the main driver
behind how the globalisation of markets has forced businesses to produce
high-quality goods while using their resources as efficiently as possible to
charge a fair price. The market can no longer demand a high price that the
customers find intolerable. However, the market is driving the companies that
are offering the desired product at a competitive price.
Businesses today have a
variety of options and opportunities to pursue business internationalisation.
It is no longer based on the boundaries of the factories that produce goods for
a specific population or geographic area. It now has a variety of audiences,
including potential customers from around the world.
Example
Because Nestle has such a
vast network and trades its products all over the world, including milk
producers and other food suppliers, it is helping to advance the idea of market
globalisation. As an illustration, consider the company Nestle, whose products
are readily available in any store or on any corner of the street.
Additionally, as a result
of the market's globalisation, businesses are being encouraged to transition to
carbon-neutral operations, and these organisations are doing so at the fastest
possible rate. This increased competition has helped to drive prices down and
improved the quality of products.
SWOT Analysis of globalization of the markets
When the idea of market
globalisation is better understood, it creates various dimensions to comprehend
its advantages, disadvantages, opportunities, and threats. The thorough
analysis offers an assessment of the idea of market globalisation. SWOT
analysis is a concept that helps organisations identify their strengths,
weaknesses, opportunities, and threads. Since businesses are built on the
straightforward idea of producing goods while being aware of customer needs and
demands, there are challenges along the way, but there are also opportunities
to improve business operations.
Strengths
The free flow of
information for users, who are potential customers who can buy the product or
service while residing anywhere in the world, is one of the main benefits of
the globalisation of the market. Whether it's the clothing item or the shelf.
Through innovative ideas, the entire world has become more connected, which
promotes organisational productivity. Through the globally acknowledged private
form of the internet, tangible and reversible goods and services are produced.
Therefore, it is generating
the global gross domestic product, which indicates that the market's
globalisation has actually introduced a new idea in which the global gross
domestic product grows over time. The goal of an enriched environment is to
offer global services, where the market's globalisation is based on more than
just having physical markets where goods and services are actually sold.
However, it also uses a
virtual platform to deliver goods or services. since there are many different
types of businesses that operate florists and offer their goods and services
globally. Now more than ever, the term "entrepreneur" refers
to more than just one specific demographic.
They now have the chance,
and this chance is significant because it allows them to move to any location
in the world using the internet as a platform. Additionally, the market's
globalisation gives companies the ability to sell their goods anywhere in the
world without having a physical presence there. But it depends on the product
being delivered promptly via the various courier services.
Weaknesses
The internet is today's
biggest obstacle to market globalisation because it offers unlimited
opportunities and influences global entertainment, education, and economic
development. Because it has made it easier for thieves to steal consumer
information, leading them to put their trust in the organisations that handle
the importation of their financial data. Since providing sensitive financial
information or data to purchase goods or services is actually becoming riskier
for them.
On the other hand, there is
a weakness of the companies that have markets in specific countries, and that
is their subsidiary markets or branch, as they do not have the best
understanding of those cultural norms and values, making it difficult for them
to remain stronger in the market.
Opportunities
Businesses today are
looking for new opportunities to stay competitive in the market. As a result,
globalisation has made it possible to stay connected to any corner of the globe
in order to reach the greatest number of people. It is critical for business
success to have as many people as possible interested in the product and
service. As a result, the opportunity for businesses to grow on an
international scale is crucial. For example, in California, McDonald's was the
only option, but with globalisation, it became a huge success.
Not only McDonald's, but
other businesses began with the same idea and worked to meet the needs and
demands of their customers. As a result, market globalisation provides
limitless opportunities for economies to grow.
Threats
The main impediment to
business growth is market globalisation. because it allows anyone to enter the
market and customers are not always experts in judging the quality of the
product, but the marketing technique really works for the business. Because it
is a major threat to businesses that provide high-quality products or services.
but are unable to compete in the market due to a lack of customer attraction
for whatever reason.
The major threat is also
based on financial transactions and fraud, as well as legal requirements in
different cultures or countries where the business will operate. There is also
a significant responsibility on the management to understand the culture of the
specific country and its people and to manufacture the product accordingly
while meeting the needs and demands of the customers.
Recommendations to improve globalization of markets
- Market
globalisation is a growing concept all over the world. Because most
businesses are working harder to expand into international markets.
However, every business owner or entrepreneur wishes to start a business
at the eighth level. However, team management is carried out in order to
conduct international form business.
- Keeping
in mind that it is now being exercised by most businesses to understand that
they need to have the opportunity where they can begin their business in a
better way. As a result, the most recommended step is to develop the
strategy while first understanding the needs and demands of the customers
in the area where the branch of the business will be opened.
- The
main issue for businesses when expanding to a global level is
understanding the legal requirements of the specific country. As a result,
the major disadvantage of smaller business entities is a lack of
understanding of legal requirements; however, corporations have the
experience to deal with such conditions. As a result, they are major
players; however, small and medium-sized businesses considering a global
venture must understand the legal requirements of the country in question.
- Globalization
of the market is critical for the country's economic growth. Businesses
can pursue this strategy in order to boost the country's GDP.
The demand and needs of customers all over the world can be understood,
and a never-ending relationship with them can be formed to promote
business activities and customer demand.
Conclusion
In conclusion, market
globalisation has resulted in the development of the world's businesses and
economies. Today, the global gross domestic product is increasing with each
passing year as business activities improve. Every business entity is working
hard, whether it is on a small scale as an entrepreneur or on a medium scale to
expand into international activities and open branches around the world while
understanding the needs and demands of the customers.
As a result, it has the
major strength of meeting the needs and demands of customers, as well as the
opportunity to start a business without the risk of unnecessary competition
from low-quality products that may enter the actual walking market. To have a
successful business, it is recommended that one understand the legal
requirements as well as the needs and demands of the specific country.
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