Price discrimination is a practice of charging different prices to different consumers under the circumstances of keeping the same cost of production. The manufacturers always set the high price in one particular region to gain excess profit because they have the certain ability to monopolize or control consumers’ demand. However, for those markets which have lower demand, manufactures will set a relatively low price to encourage the consumption. Starbucks charges the relatively higher price in Shanghai than in New York and Mumbai to pursue the higher profit. The high price elasticity of demand of Starbucks ' coffee in Shanghai can be one factor and Starbucks also maintain the high price through taking action to influence consumers’ sensitiveness for high prices.
These new technologies, as well as the democratization and expansion of capitalism has contributed to globalization and consumerism, which has effectively helped spreading and promoting popular culture, such as TV shows, commercials, sports broadcasting and popular music. Cultural and media services have also started to become a main sector of economy in a lot of advanced societies, due to their decline of engineering and manufacturing. Instead of manufactured products, cultural artefacts such as images and signs have become the more significant commodities in the market. The world has slowly become highly saturated by media, and people were increasingly overwhelmed by media and advertising reports through television networks, radio stations, newspapers and billboards. These changes have contributed to the change of people’s view of the world and the way literature is written, marking the start of postmodern literature.
Growth in internet retailing and online shopping: since Wal-Mart is the biggest offline retailer, it can use this opportunity as a way of expanding its presence in online realm to reach more customers and increase its revenue. Threats i. The rising price of commodities: as prices go up, the profit margins of Wal-Mart are squeezed and its competitive advantage is eroded. ii. Political pressure and foreign laws: changes in foreign law and pressure from politics affect the companies operation in other countries.
Japan and its Globalization For the recent years, globalization and Japan appear as two binary terms. While several nations take advantage of the benefits resulting from globalization, take for example China and its foreign direct investment (Yu, 2002), Japan views globalization more of a problem due to the compromising effects it caused to its national identity. The country formulated seemingly practical solutions to mitigate this pseudo-problem while continuing to beat foreign competitors in the world’s labor market. Japan made this possible through the aid of its highly-recognized key industries such as automobiles, consumer electronics, and computers. For the purpose of this paper, the key players in the globalization of Japan and the nations it has partnered with in its efforts to globalize as well as its outcome will be identified.
Factors abound this growth are the specific higher quality of gourmet and specialty coffees as compared to commercially available ground coffee grades and an increment in the awareness of such quality differences amongst the consumers. Additionally, the company’s outlets provide ideal locations for both formal and informal meetings owing to their well-chosen locations across different states. These ideal setting have proven to appeal to the younger customers especially the teenagers and young adults. With time, the company has recognized the need and the rise in demand for different varieties of beverages both coffee based and specialty teas which the company further customizes as per requested by different customers. Caribou Coffee is generally outperforming its competition in regard to understanding the customer’s needs and thus is specifically set to take an early advantage in the growing and booming coffee industry.
There is a lot of Domestic consumption that works as growth accelerator. It is one of the first companies in China to Focus on environmental protection and energy efficiency. It has Selective policies for foreign investment as well as globalization of Chinese companies. Volkswagens main regions are Shanghai, Zhejiang Liaoning Beijing Hubei Shandong Guangdong. Overall in china Volkswagen products have increased growth by a lot and is still increasing making competitors fall even further behind.
Since most people perceive the iPhone as a luxurious gadget, inflation, recession, and dollar fluctuation may lead to reduced sales. Besides, social factors such as increased purchasing power in markets such as China, Africa, and the Middle East imply Apple will expand their marketing operations to such markets (King, 2011). Moreover, rapid change in technology means that Apple has to invest much in research and development to upgrade their products hence outdoing compensation. Lastly, legal factors such as the numerous lawsuits Apple had with Nokia, HTC, and Samsung may hamper Apple’s investment in upgrading the iPhone (King,
On the other hand, Amazon makes it more specific by allowing users to specify their items as like-new items, in-very-good-condition items or more. Amazon gets customers who want to buy a product with a more specific identifier. The different levels of item conditions are a reason a product is sold on Amazon than eBay. Even though Amazon may be a larger marketplace at this point than eBay, there are still some advantages that eBay has over Amazon’s. When it comes to buying imported goods, eBay might give more seller choices.
For example, in Indonesia we have a lot of spices and in USA they has modern technology. Then Indonesia will export their spices to USA, otherwise USA export technology to Indonesia (Sutarto 2014). There are many of International Business aspects and one of the aspect is Export and Import. Export and Import basicly is the activity of a country to sell