1

MARGIE'S TRAVEL

The rise of Global

Corporation
M
 2

Globalization Global Corporations

Is a business initiative based on the
belief that the world is becoming more
homogenous and that distinctions
between national markets are not only
fading but for some products will
e v e n t u a l l y d i s a p p e a r. A s a r e s u l t ,
MARGIE'S TRAVEL
In contras, often faces a trade-off between seeking
competitive advantages through the lower production
cost that global economies of scales allow, and seeking
competitive advantage by tailoring the products to
specific national markets- forgoing economies of scale
but providing a products more tailored to local taste.

companies need to globalize their
international strategy by formulating it
across markets to take advantages of
underlying market, cost,environmental,
and competitive factors.
Further more, the global firm must determine how to
balance the demands and practices in one country with
the demands and practices of other countries.

M
 3

Presence in key
Global Markets

The United States, Japan, and Western Europe

MARGIE'S TRAVEL

account for about half of the world’s total

consumption. They share certain important
economic and demographic condition such as
high income levels, and high GNP values. It has
been argued ( Ohmae,1990) that a firm cannot
truly complete on a global scale if it is not
present in this “triad”.

M
 4

Competitive Strategies of Global

Corporation

1. Cost leadership
2. Differentiation
3. Focus

Globalization Drivers
MARGIE'S TRAVEL

 Market factors
 Cost factors
 Environmental factors