Free Sample: The effect of globalization on marketing strategy paper example for writing essay

The effect of globalization on marketing strategy - Essay Example

The two studies included in this dissertation are designed to study the relationships between these two effects of libations on firms’ performance and their international marketing cooperation and performance. The following are the different scholars tried to explain on how the globalization affect the area of business.

According to (Tradeoff and Stern, 2002; Jones, 2002; Rocco, 2002; Richmond, 2002),dramatic changes in the business environment that cause shifts in business conduct and marketing activities of firms around the world include, for example, the emergence of global markets for goods and services, labor, and financial capital, advances In technologies, and a reduction In traditional barriers to trade and investment.

These changes have resulted in two significant globalization effects such as the emergence of global market opportunities and threats which are the two most often cited effects in globalization related literature (Contractor and Loraine, 1988; Faucet and Goes, 1993; Hit. Keats. And 998; Mole. 2002). Due to the emergence of global market opportunities and global market threats, firms have been forced to respond quickly to these effects. Unlike other environmental changes, the effects of globalization are far more pervasive affecting every Individual, equines, industry, and country (Garrett, 2000).

The environment surrounding business today is characterized as a “hypersensitive” environment a faster and more aggressive competitive environment (Davies, 1994; Harvey and Novices, 2002). Major forms of business restructuring in response to the dramatic changes brought by globalization include, for example, investments in new technologies, downsizing and reengineering, the formation of strategic alliances and networks, and a shift from international and multinational to global and transnational stationeries, 2002).

Since the effects that global market opportunities and threats have on firm performance are almost unexplored, on the one hand, it is suggested that global market opportunities enable firms to access worldwide resources and expand into many new overseas markets; thus, enhancing firm performance (Hafts, 2002; Jones, 2002; Levity, 1983; Shocker, Sacristans, and Request, 1994) and on other hand global market threats can be destructive to firm performance due to an increasing number of competitors and an increase in intensity of competition coupled with higher 1983; Sanchez, 1997).