Essay Example on Globalisation is a huge part of businesses Nowadays









Globalisation is a huge part of businesses nowadays it holds many key aspects in a company's growth and its eventual success One key aspect of globalisation is how it effects international companies Companies nowadays have gone global from being small domestic companies These companies hold a huge place in today's society they are known almost everywhere whether it be online or through physical branding on products etc The internationalisation process takes a long time but if done correctly it will have a huge benefit for the company There are many examples of companies undertaking the internationalisation process and then have it transform the success of the company completely For example Amazon com which was founded by Jeff Bezos is a online product retailing company Amazon is known for selling books subscriptions amazon prime audible etc Amazon fire sticks Kindle etc They were well known for the Kindle and this product had high demand in a lot of other countries This lead to them selling it globally rather than domestically this lead to huge success The reason companies become multinational enterprises One reason for companies becoming multinational enterprises is that resources from other countries were more cost effective then domestic resources 

This would then allow more production of products As more and more companies expanded globally there was more of a need to gain an advantage over the companies be it foreign or domestic This then lead to companies investing in other companies that sold important materials for a cheap price For example the main materials were natural materials such as rubber steel aluminium and a few others Some Businesses in this day and age will try to stay in their domestic market instead of try to stay expand their business Companies making this mistake will soon see that expanding globally will allow you to reach more countries and reach more consumers It is well known for companies aiming to go global to start selling their existing products to countries such as Pakistan or china this is due to their large population numbers meaning a larger number of consumers This is the same with developed countries Countries such as the UK and USA don't have as much consumers as Pakistan and China But they do have consumers with a large spending power By doing this the company is able to branch out and get their brand name recognised globally while also making profit and growing their business After a company has expanded globally it can then take its time to research the country it is selling to and determine what changes can be done to their product line based on the main consumer focus By taking an existing product and tailoring it to the needs wants of a group they are able to outdo competitors By doing so they will remove the competition and maximise profits as this is the main focus of a company's expansion usually There are many companies that decided to expand in the past and it has been successful for them leading to more than 50 of their sales coming from countries other than their own Example of companies that have done this are Sony Nestle Volkswagen etc 

Another reason for companies becoming multinational enterprises is that companies will setup research facilities for foreign research and development they will use these research facilities to gain useful knowledge information A tactic that some companies use is that they will launch a project in as many countries markets as possible at once to maximise the amount of profits that can be made there are many reasons to this but it is to mainly to reap the rewards before other companies replicate and market a product There are many different kinds of information that can be researched one of which is previous marketing statistics companies can look at sales data from similar products to theirs from other companies they can analyse the data and find things like the countries or regions with the best product sales then the company can make smart decisions based on the statistics and ultimately earn more profit In addition to this the life of certain products became shorter and the research that was done for a specific product and the projected sale outcome did not bare enough profit This meant that company had to target more larger markets in order for that product line to be successful How firms become Multinational Enterprises

One method of how a company becomes a multinational enterprise is through export and imports This is known as one of the earliest forms of becoming a Multinational enterprise Exports and imports deals with the import and export of products as well as services An example of import and export of products could be a shipment of apple iPhone An example of service import and exports is transportation tourism service performance and also asset use Another method of how a company becomes a multinational enterprise is through something called high country attractiveness High country attractiveness is a measure of a country's attractiveness to an international company This is basically what a country has to offer a company this is in terms of a competitive advantage and if they already offer a competitive advantage then they will need to sustain this In addition to this companies must have strategic competencies Organisation capabilities are not essential within the company but they will allow for a increase in returns the organisational aspect will work alongside the strategic aspect to allow for both strengths to come together and make an impact in the company's favour This is to be able to balance the foreign markets and environmental conditions that are lacking knowledge and awareness The perquisites mentioned are essential for an international country to help it compete globally

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