STAGES FOR GLOBALIZATION FOR AN

ENTERPRISE
Stages

Stage:1

Stage:2

Stage:3

Stage:4

Objective

Action Plan

Physical
movement of
goods and
services from
the country of
its origin.

(i) Identify one

country.
(ii) Focus on one
product or services.
(iii) Explore
opportunity for
exports.
(i) Build a strong
relation in one
market.
(ii) Promote brand
name with
customers and
channels.

Strengthen
and stabilize
one overseas
market.

Establish
manufacturing
base in the
importing
country.
Spread the
distribution and
increase
production in
the region.

Move to other
regions by
investing and
producing.

Stage:5

(i) Narrow down to

one local partner.
(ii) Locate an ideal
place for
production.
(iii) Workout for
financially together.
(i) Develop fast
network in the
neighbouring
countries.
(ii) Setup
warehouses / subdealer network in
the region.
(i) Set up
subsidiaries.
(ii) Develop strong
systems.
(iii) Induct right
people with
performance.
(iv)Flexible to local
environment.

Anticipated risks and

hurdle
(i) Local resistance for
bringing.
(ii) Technical and
commercial barriers.
(iii) Competitive forces
from local and
imported goods.
(i) Local competitors
pose threats.
(ii) Price war is
inevitable.

(i) Competitors
increase their
production capacity.
(ii) Local regulations
on labour, transaction
and infrastructure may
trouble the operation.
(i) Every part of the
region works
differently.
(ii) Rules are not
uniform.
(iii) Demand level is
not similar in every
country.
(i) Cross cultural
complexities.
(ii) Local adaptability.
(iii) Promotional
barriers.

End Result
(i) Entry into one
country- successful.
(ii) Learning
experience in a
country outside.
(i) Strengthen one
country by
overcoming all the
hurdles.
(ii) One or few
importers extend
cooperation and
support for constant
flow of goods.
(i) Local production
brings down the cost.
(ii) The enterprise
becomes close to the
customers.
(iii) Brand loyalty is
built.
(i) Access in the whole
region.
(ii) Easy to experiment
in other regions.
(iii) Revenue is
increased.
(i) Global take off
assured.
(ii) The enterprise has
a competency in skill
and knowledge to go
global.

Stage:6

Global
mindset,
customer
orientation and
constant
innovation.

(i) Organization to
be global.
(ii) Investment to be
global.
(iii) Technology to
be global.
(iv) Real
optimization of
resources takes
place.

(i) Challenge on
governance.
(ii) Ethical standards.
(iii) Concern for the
locals.
(iv) Human Resources.

(i) Global investment.

(ii) Global
competency.
(iii) Global branding.
(iv)Global
Organization.