Monday, October 21, 2013

Intensity of todays Global Marketing Competition

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)



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