Drivers for globalization of firms - What are five major kinds of drivers for globalization of firms\"Globalization is not something we can hold off or

Drivers for globalization of firms - What are five major...

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What are five major kinds of drivers for globalization of firms"Globalization is not something we can hold off or turn off . . . it is the economic equivalent of a forceof nature -- like wind or water." - Bill Clinton (American 42nd US president (1993-2001))Drivers of the globalization of firms include government, competition, cost globalization and market drivers.Globalization has also been driven by technology, including use of the Internet, mobile phones and satellite-tracking technology.1)Market Driversa.As domestic markets become more and more saturated, the opportunities for growth are limited and global expanding is a way most organizations choose to overcome this situation. Common customer needs and the opportunity to use globalmarketing channels and transfer marketing to some extent are also incentives to choose internationalization. (Ferrier, 2004)b.Market drivers define how customer distribution patterns evolve and focus on the steady convergence of customer needs. The marketing of standardized products and services as consumers in different regions demand similar products is a driver of globalization.c.Common customer needsd.Global customerse.Global market channelsf.Transferable marketingg.Over the years, with increase in the level of income and standard of living, the demand of consumers for various products has also increased. Apart from this, nowadays, consumers are well aware about products and services available in other countries, which impel many organizations to work in association with foreign players for catering to the needs of the domestic market.h.Per capita income converging among industrialized nations (e.g. Japan, Hong Kong, …) i.Convergence of lifestyles and tastes j.Organizations beginning to behave as global customersk.Increasing travel creating global consumers l.Growth of global and regional channels m.Establishment of world brands n.Push to develop global advertising2)Cost Driversa.Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact. Other cost drivers to globalization are the opportunity to buildglobal scale economies and the high product development costs nowadays. (Ferrier, 2004)b.Differential costs and global scope economics are cost globalization drivers. The
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