By
Raul Bernardino
Abstract:
In early stage of the technology based firms are confronted with
the complexity of foreign markets and global competition from their earliest
stages of development. Not only must technology entrepreneurs keep destined
with ever-changing technology based product offerings, but they must also
simultaneously stay abreast of competitors and industry trends in multiple
countries.
The findings suggest that resources necessary to pursue
international sales have an important impact on both foreign market intensity
and diversity. Additionally, firm age was positively associated with global
diversity but not international intensity. Moreover, today business does not
have to have resources; most importantly knows how to deploy resources in the
timely manner. These findings support
the notion of small technology firms being “instant internationals” but suggest
that proceeding to the next step-achieving global diversity-requires
significantly greater time and resources.
Introduction:
Nowadays, with the Information Communication and Technology (ICT) era
especially the existing of the internet, transportations and financials flow, the
global competition market becomes so easy to adjust and adapt with the new
products and services. It is including easy doing a strategic plan toward to
the new market environment. Additionally, the global market becomes booming in
almost all part of the world whereas it has accessed the communication means
(telephone, radio, TV, and internet) and access to the transportations (private
and public) including the multi financial accessing.
There are several
factors need to be considered in the global competition as follows:
•
‘Global competition in the home market’: A lot of new brands are arriving and supplying into the local
market. Moreover, it is attracting a lot of current customers. Most probably, we
would also lose our own customers very quick; it is because there was a good
quality of the products and services that offered from the competitors. The
product price may also lower than our products. The global competitions at home
(local) markets are also speeding up a new innovation and added value to the
customers, it is including developing and improving the current products and
services with the high rates quality standard.
•
‘Stagnant or shrinking home market’: The global communication also helps to stagnant the home market.
For instance, new products that not yet launch or still under development however
in other hands, the promotion of that products have been advertising and the
customer will be waiting for that new products instead of buying the existing products
with old fashion.
•
‘Foreign markets with more opportunity’: It is an opportunity to expand the market in the foreign
country, however the marketers have to understand several issues such as ‘International Trading System, foreign
country economic environment, foreign country political and legal system,
foreign country culture and it is environments’, Armstrong and Kotler
(2010:580-585). The international trading system may have a restriction from
one country or nation to the other countries. For instant, to protect their
domestic products and its company, the government of the country may put high
tariff or taxes to the imported goods in order to have additional revenue as
well to the country. The economic
environment, the marketers have to analyse ‘foreign
country industrial structure and income distribution’, Armstrong and Kotler
(2010:582). The industrial structure consists of economic subsistence, export
raw material economies, economies of the industrialization, and industrial
economies itself. The income distributions have to look at low individual
incomes, medium, and high household. The foreign country political and legal
system. The political stability, bureaucracy, and legal system are the major factors
and metrics point for the new market entry into the country. The marketer has also
need to know the new target country’s culture and norms before trying to expand
their products and services marketing. Each country has different norms and
beliefs. For instance, we cannot sell fast food with pork meat in the Islamic
countries and etc.
•
‘Expansion of customers to international markets’: Building a good relationship with new customers and with
existing customer can be seeing as the point to expanding new products and
services, including introduce new product that foreign countries have.
Conclusion:
According to Professor Gary Hamel, London Business School on ‘Creating
the Future’ presentation to the senior executive course at Stanford University
(December, 1997) stated that: “Ninety
per cent of what you need to learn, you will learn from outside your own
business sector.” Therefore, we do need a coping from other organizations and
adapt them into our own business environments.
Especially the changes are more quickly than ever (time compressing era).
References list:
- Armstrong, G. and Kotler, P. (2010) Principles of marketing,13th edition, Global edtition: Prentice Hall
- Miles, G.,Preeece,S.B., Beatz, M.C. (1998), Explaining the international intensity and global diversity of early-stage technology-based firms [on-line]. Available from: http://www.sciencedirect.com/science/article/pii/S0883902697001055 (Accessed Date: 22 October 2013)
