Competitive Marketing Strategies

in Global Marketing Environment

Dr.R.K.Srivastava & Dr.Srini.R.Srinivasan

Presented by Deepak Patel

BDM- Corporate
Amore Crosslink Inc. (P) Ltd.
Agenda
• Globalisation and Developing Nations

• Trade and Industry

• Labour and Employment

• Intellectual Property Rights

• Environment

• Conclusion
Objective

 To Understand and to analyze the impact of Globalisation in

developing countries

 To Strategies the benefits of Globalisation

Globalisation and Developing Nations

 Impact on Domestic Economic Development: Globalisation has

intensified interdependence and competition between economies of the
nations in the world market. This is reflected in regard to trading in
goods and services and in movement of capital, labour and
employment, environment.

 Opportunities vs. Challenges : Globalisation might bring new opportunities

to developing countries such as greater access to global markets,
accelerate technology transfer from more developed countries, holds
out promise improved productivity and increased efficiency. However,
globalisation has also thrown up new challenges to developing countries
like volatility in financial market, abuse of labour, environmental
degradations, etc.
Definition of Globalisation

• Financial scholars such as states that global integration of the

financial markets can be seen as the process of globalisation. (Walker en
Fox )

• Globalisation as the integration and interconnectedness of world

economy (Neuland en Hough, 1999, p. 1). Globalisation as the
reduction of transaction cost of trans-border movements of capital and
goods thus of factors of production and goods. (Gill ,2000)

• Globalisation as the increasing integration between the markets for

goods, services and capital and at the same time the breakdown of
borders. (Redding ,1999, p. 19)

• Globalisation is “a process of increasing connectivity, where ideas,

capital, goods, services and people are transferred across country
borders.” (PRUS 2001)
Trade and Industry
Free Trade: Developing countries have weak economic, legal, and
political institutions, making them vulnerable to high levels of corruption,
insecurity, and conflict.
Developed countries have already had better infrastructure, highly skilled
labours, advanced technology and good managerial skills. That in turns
makes developing countries unattractive for foreign direct investment.
Therefore, free trade as a game is an unfair competition and will only benefit
the highly industrialized countries.

Foreign direct investors (FDI’s) of global companies, bring huge

capital, expertise and new technology to developing nations. however the
FDI’s presence in the developing countries might also bring the
consequences that foreign capital brought by FDI’s is being used in
speculative attacks against weak currencies of developing countries
constitutes a real threat to economic stability and to the level of employment
in these countries.
Trade and Industry
Infant Industry and Trade Liberation: Stiglizt , former Chief
economist of the World Bank, states that the impact of trade liberalization has
caused inefficient industries, which are mostly found in infant industry in
developing countries, to close down as a result of pressure from international
competition

In the early 1990s, Indian government started the project of small car
projects using local contents as many as possible. The main purpose of this
project was to foster development of an indigenous automotive industry, the
transfer of technology and the flourishing of supporting automotive spare part
industries.
Infant Indian car industry in my view is certainly less efficient, and therefore,
could not compete with more mature Japanese car industry and thus still
need some certain of protection before becoming strong enough to compete
in the global market. In this sense, globalisation through trade liberations is
more beneficial to industrialized countries for opening fast-growing, huge
foreign markets for goods.
Labour and Employment
Labour: Global retailers and brand MNC’s in this industry relocated
their productions in some giant countries and would result a potential
million of jobs losses, some smaller developing countries had to allow
their labour wages remain low and be exploited.

Owning to global competition pressure, Nike start searching for

alternative, lower cost producer. The company worked with its lead
suppliers to pen up manufacturing plants in Indonesia, China and
Vietnam benefiting low wages and abundant number of labours.

Employment: Highly skilled workers, professionals and capital

owners in developing countries are now free to move with their resources
where they are most demanded. Mainly attracted by better salary and/or
investment opportunities in the north, which could have harmful
consequences for long-term growth of the countries in the south
Intellectual Property Rights

• When developing countries join the global organization, they are

bound with intellectual property right agreement.

• Developing countries coerced into an agreement, which transfer

million of dollars worth of monopoly profits from poor countries to
wealth countries under the property right law.
Environment
• The environmentalists or greens concern that globalisation is
encouraging more economic growth, mass consumption and large-
scale economic activities and thus excessive exploitation of
renewable and non-renewable resources (Helleiner, 1996, p. 62).

• A similar problem arises with the exploitation of other scarce

resources such as minerals, raw materials, and waters (Hoogvelt,
1982, p. 130-31).

• As a result, there will be faster environment degradation around the

world. Since, developing nations is great supplier of raw materials,
the greatest degradation will be seen in these regions (Hoogvelt,
1982, p. 131).
Conclusion
• To benefit from globalisation in trade and industry and take the most of
it, the government of developing countries should still seek limited
protectionism.

• MNC’s in Industrialized countries have been in business longer and

over time have been able to improve their efficiency in production. As a
result they are able to offer their product at a lower price in international
markets and still remain profitable. Infant industry in developing
countries, therefore, still need some degree of protection before
becoming sufficient strong and competitive when protection is eventually
lifted.

• The government of developing countries themselves need to find ways

to grow more rapidly and adapt new technologies, improve their human
capital base and create stronger institutions and encourage the strong
research and development.
Thank You