Rizal Adhani Sahid

Creative Brand Management

14111015

SUMMARY OF GLOBALIZATION

Globalization is strategy to look for opportunities anywhere that allows

companies to optimize the business in various countries desired.
How can companies go global: import-export activities, involving foreign
licensing, and direct investment in overseas operations, the high demand of your
products in countries that want to be marketed.
To set company strategize go global with Joint venture and Strategic alliance
Strategic orientation of global firms
o Ethnocentric is when the values and priorities of the parent organization
guide the strategic decision making of all its international operation
o Polycentric is when the culture of the country in which dominate a
companys international decision making process
o Region centric orientation is when a parent company blends its own
predisposition with those of its international units to develop regionsensitives strategies
o Geocentric orientation is when an international firm adapts a system
approach to strategic decision making that emphasizes global integration
Multidomestic is it sees customers as being unique, a multidomestic company
modifies a product to accommodate the wants/needs of the market, for example,
a coke cola sold in china has a different taste from those sold in the us.
Global industry is producing a product the same way for every market that it is
sold, there are not any modification made to the product, the exact product sold
in china, wouldnt change if sold in Europe.
The global challenge is a global firm competing in a global industry must be
responsive, to some degree, to local market condition.
Market requirements in global competition
o The rate of product innovation desired: products can be arrayed along a a
continuum from products that are not subject to frequent product
innovations to products that are often upgraded.
o Customers acceptance of standardized products: all market can be
arrayed along a continuum from markets in which products are
standardized to markets in which products must be customized for
customers from market to market.
Strategies for firms in foreign markets: Niche market exporting, Licensing and
contract manufacturing, Franchising, Joint ventures, Foreign branching, wholly
owned subsidiaries.