77

Global
GlobalMalcts Differences in Cultural,
Demographic and Markets, Multi Country and
onyxting
h

Chapter
Differences in Cultural,
Competing in Global Markets:
Markets, Multi Country and Globalcompetition
Demographic and
9 concepts, Strategy options Competing in
Emerging Markets

possibilities in
expanding daily. Allbusinesses seek out the best business after
The business sector is There is just one choice left
ther operations and begin earning more money. Entering a global market
order to grow the global market.
or nation, and that is
cOveringthe entire neighborhood chance of excessive gains or loss. As aresult,
businesS, which also raises the internationally and prefer to serve the
ises the volume of their business
goal of growing competitive advantage and
many people give up on the to achieve sustainable
organization that aspires
domestic markets. For an market.
leadership , it is imperative for them to enter the global
achieve market
markets
Reasons for choosing international business
always present some new opportunities in the
markets
1. New Market- Fresh serve the new markets by expanding
into
chance to
world. You can have the best a new audience and create some
markets. You may be able to connect with
Overseas
useful contacts as a result.
major goal is to maintain high product and service
Every organisation's you
2. Sales Increase- company and keep it small in scope and approach,
sales. If you don't grow your increasing revenue. Targeting new markets and a
large
goals of
could not succeed in your With a wide extension, it might be feasible.
improve revenue.
audience base will help you with modest objectives
Companies functioning in home markets
3. Company objective - prospects for international marketing.
In
response to
typically join overseas markets in unsolicited export orders they receive
from
strive to satisfy
these situations, businesses
who are located abroad.
friends,companies, and relatives
The overseas market's legal system has a significant impact
Government Regulations mandated
4.
market entry method. The majority of the Gulf states have
on the choice of a is a rich
international businesses have a local partner. For instance, the UAE
that all partners
majority of those businesses work with local
market for Indian businesses, yet the
there.
 78 Strategic Managernent (M.M.S. Sem. IlI)
5. Flexibility When stepping into foreign markets, businesses should be mindful of evia
restrictions. Supposedly during the following ten years, a market that currently seems
lucrative may not necessarily remain such. It might be brought on by modifications to the
political and legal system, adjustments to consumer preferences, the formation of new
market segments, or adjustments to the level of market competition.
Reasons to avoid international markets

Despite appealing potential, few companies venture into overseas markets. There are severl
justifications cited for staying domestic. The largest obstacle to accessing foreign markets is believed
to be these companies' woy that their products won't be marketable abroad and, as a result, their
focus on the domestic market. The most significant hurdles, highlighted the following points:
excessive red tape, trade restrictions, and transportation issues
inadequately trained staff
lack of motivation

absence of organised help

unfavourable circumstances overseas
slow buyer payments
absence of alternatives
payment defaults
language differences
Multi country competition and global Competition Concepts
When competition in one national market is unrelated to competition in another national
market, this is referred to as multi-country or multi-domestic competition. There is merely a collection
of independent country marketplaces: there is no "intermational market."
Global competition occurs when strong links between national market rivalries create a truly
intemational market where top competitors face off against each other across borders.
Rival businesses strive for national leadership in multi-country competition. Competitive
industries on aglobal scale pit rival businesses against one another for domination.
Acompany's strategy must vary depending on the nation it is operating in for it to be successful
there. The commercial and competitive climate must be considered.
 Global Markets Differences in Cultural, Demographic and Markets, Multi Country and Global. 79
Conypetingin
)
What ls an International Strategqu?
it
Aglobal firm is one that exports internationally or offers services to customers or clients in other
international
nations. The initial step in most organisations' global development plans is typically an
strategy, which involves exporting or importing goods and services while keeping a head office or
nation.
offices in their home
There is no one method that works for all business ventures that involve global expansion.
and scale.
Companies may decide to invest more in their target markets as they expand
Infact, companies choose from a variety of models, including:
Transnational Strategy: In order to coordinate local subsidiaries in foreign markets,
nation.
multinational corporations function with a central office or head office in one
overarching brand and
Because of the organisational structure. there is a single
leverages the power
operational hub that controls overall supply chain management and
McDonald's, Nike, and Coca-Cola.
of scale. This model is used by companies like
marketing, and product
Multi-Domestic Strategy: When organisations tailor their sales,
serve they are termed under the
strategies to the particular industries and markets they
numerous smaller, nation-specific brands
category of multi-domestic strategy. There are
local consumers as opposed to a single global
that are catered to regional tastes and
This concept is used by well-known wellness companies like Johnson & Johnson.
brand.
launched "Kinley Flavors" aerated drinks with popular local flavors such
Coca Cola has
as lemon, jeera and orange.
companies create a single worldwide brand and make minimal
Global Strategy: When Strategy. The
adjustments for diferent markets they are said to use Global
to no wherever you go, and tech
keyboards)
technology is the same (with a few minor tweaks to they rely
Apple is a fantastic illustration of this. Firms adopt a global strategy when
giant
approach based on gaining the advantages of experience, location
on a low-cost across different countries.
and services
economies, and providing standardised products
products and services are typically offered in an undifferentiated manner and at
These
firm operates in.
competitive prices in all of the countries the global
exporting goods and services to
International Strategy: When businesses add value by
unavailable, they are said to be
markets abroad where those goods and services are
tactic in that a multinational
pursuing an international strategy. This is a straightforward diversity by
nations with little to no
company offers unitorm goods and services in many
tightly controlling its abroad operations.
" Example - Exports of Royal Enfield Bikes
 80
Stralegic Management (M.M.S. Serm lu
Choosing an international business strategy gives you several advantages:
Realizing economies of scale: Businesses can achieve cost econornics fro
economies of scale by increasing their sales volume through worldwide expansion.
Market expansion and extension: Through economies of scale and mutual
advantageous collaborations, businesses can expand their markets fromlocal to
international levels.
Understanding location economics: Some nations have access to natural resources
that provide their economies a competitive edge. Firms can leverage the advantage to
make goods at a lesser cost.
Access to Resources Abroad: Businesses that grow abroad have access to resources
financial, or
that they do not have if they exclusively operate in domestic markets. Natural,
human resources can be included.

However, there are some disadvantages of International Strategies

the political and economic
1. Higher Risks: These risks stem from the unpredictability of
circumstances in the host nations.
cultural diversity both internally
Challenges in managing cultural factors: Managing
2.
businesses. They have to supervise workers from
and outside is difficult for international
They use their native markets to supply
various ethnic backgrounds who work there.
challenging culturally.
markets outside that could be quite still
Despite the liberalisation (opening) of international trade, there are
3. Trade barriers: caps, inconsistent standards, or local content
such as tariffs, price
significant trade barriers,
requirements. and the
Extensive coordination between the home office
High bureaucratic costs: These
4.
subsidiaries is necessary when operating internationally.
foreign operations and administrative expenditures for
coordination and
increased
have an impact on
communication.
company operates worldwide and chooses not to
costs: When a domestic advantages,
5. Higher distribution order to capitalise on
abroad in
establish production facilities
goods may result in higher distribution costs.
delivering
competing in emerging
markets
entering and requires careful
Strategic options for a product on a global scale
entry methods are crucial since selling
organisation before, during, and after
Market maintain global
upkeep procedures. Companies may different objectives for entering a
preparation and Every firm has those
markets thanks to these tactics. discover a strategy that best suits
entering new a company
having a variety of options can help
market, thus
nations where you plan to sell them
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