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Globalization Drivers (Factors that force a company to be global)

There are ten distinct globalization drivers. These are described below very briefly with real life examples):
1. Market Drivers Mainly due to global connectivity):

(a) Common Customer Needs across the globe irrespective of citizenship, religion, culture, etc. There are 48% customers on average in the world who feel a need to be fulfilled in the same manner, such as cell phone sets, internet, computers (lap top and tabloids), Mens Tie, Shirt, Wrist Watch, shoes, briefcases and suitcases, office bags, school bags, pens, car audio-video, and what not? You can easily develop standardized products to capture those customers across the globe and can sell at a premium. Why do you remain domestic or want to be a domestic seller?
(b) Global Customers: 33% customers think globally in terms of many products. Why

dont you make a product that will be cherished by this 33%? Thirty three percent is equal to about 1200 million customers. (c) Global Products: Some products, by the virtue of their nature are global, as perceived by customers, such as perfumes, wrist watch, mens shirt, jeans, eye glasses, digital camera, TV, cell phones, etc. Choose the one(s) that best suit your company capability and can bring profit for you along with a bonusa global brand. Nova is an example.
(d) Global Distribution Channels: Nowadays, global marketing channels are easily

available. Some channels can be zero-based customized and some may be contractual. Even customers they themselves globalize some products. For instance, 70% exported products of Thailand is directly purchased by arrangers, traders, and end-users. You do not need to do any thing. Just make a good product and charge a reasonable price. Example: Bellissimi lather products and
fashion accessories, Imperials accessories for its durability, low price, and aesthetic beauty. Casio Calculator for its strong brand image due to performance quality at low price (Texas Instruments are very expensive).

(e) Transferable Marketing: You have succeeded in domestic market. You know how to develop an effective marketing strategy for a given customer segment. You

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also know how to produce a good quality product without product gap. You have good connections with suppliers. You also have state-of-the-art technology. Why dont you extend your valuable knowledge to enter the globe? E global, since you know how to satisfy your customers based on the VOC. This time, listen to your knowledge and learn from your experience. 2. Competitive Drivers:
(a) You have a good product and good technology. But in a small domestic market,

contestable market effect is severe. Competition reduces your market share despite higher quality of your product, along with your strong domestic brand image. Go global and make more money and covert your domestic brand a global brand. Example: iPhone, Nova, Miyako.
(b) You are competing in lead market only. Lead market gives you only few weeks to

make money. Extend to global market successively with a downstream technique. Example: Apple, Toyota, Sony, JVC, Pioneer, etc. 3. Cost Drivers: (a) Your domestic market is small. Go global to produce in huge quantity to achieve economies of scale and scope. You will be able to sell at a low price in a global market without diluting your product. You just forget that you have a domestic market. That one becomes a part of your global market country portfolio. Example: Citizen Watch.
(b) Global Outsourcing: Go to different countries to outsource your production at a

lower cost and sell them directly from those plants to nearby markets (direct distribution) at a lower price. Just make sure that copying and cheating are avoided via limited edition digital signature tagging and packaging including presence of some of your native key employees volume, and brand image. 4. Technology Drivers:
(a) Use internet and other remote devices to market your product. Technology-based

Of course, this is satisficing

global marketing. But it is still better than domestic marketing in terms of cost,

products are often natural drivers to globalization. Example: Indian Music being globally marketed. 5. Government Drivers: (a) Take advantage of export subsidy and other incentives

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(b) Use benefits of EPZ (c) Obtain global quality certification such as ISO 9001 and other quality & fitness certifications. This will help you overcome negative country of origin effect. (d) Take advantage of countertrading cooperation, if beneficial and capable. Example: Pepsi in Russia.
6. Miniglobals: Since one or two products with uniqueness in domestic market is

unattractive, go for globalization. Example: Mont Blac, Red Leaf, all perfume products. 7. Cultural Convergence: Due to rapid (CAGR = 21% approximately) increase in global connectivity and religious polarity, take advantage of these two factors and push your product globally. Your LTO will not be so long. 8. Reverse Logistics: Sell your reverse logistics through arrangers and traders at low price without reducing quality. You can avoid global distribution and IMC costs. These are natural drivers. Manhattan, Franco Maldini, Hugo Boss, Peirre Cardin, Marks and Spencer, Omega, and many have made money from such globalization to downstream globalization. However, they are already global. Sound Track Smart Tech, etc. are pure examples. 9. Global Product Life Cycle: A product may become old in your domestic market but still remains new to some other market. Go global. Example: Microwave Woven, Vacuum Cleaner, OHP, lap top computers, Desk Jet Printers of HP, cell phone without internet browser or MSD, etc. 10. Financial Products: Make your financial products global to reduce costs and time; gain efficiency and effectiveness.