Four Factors Of Globalization

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When a firm successfully formulates and implement value-creating strategy, by put the commitments on action so that it increases the range of opportunities for firms to compete in the market. At this area, globalization happen when the resources and the capabilities found in the home country or the headquarters allow the firms to pursue the strategy into market located in other countries. Based on Michael Porter’s model, four factors that contributed to the firm in a dominant global industry are factor of production which is land, labour, capital. The second dimension is demand conditions where the nature and size of buyers need. Third dimension is a related and supporting industry and lastly the firm strategy, structure and rivalry. According…show more content…
According to Buckley (2009) stated that “global strategy focus more on the standardization of products across all the different country markets around the world”. These means that the products are depending based on their own countries. This strategy offers higher opportunities to take innovations developed at corporate level. In order to achieving efficient operations with global strategy, it requires sharing in terms of the resources and cooperation across country boundaries, that require centralization and headquarters control. A global strategy will produce low risk that can reduce the firm growth opportunities in local markets because global strategy is not responsive to the local market which requires the adaptation of the local needs. Global strategy can be implemented in a few way such as cost leadership, market expansion, sourcing. Cost leadership is based on the reduction of the cost which can lead the firms to sell the product at standard throughout the worldwide. Besides that, market expansion such as Coca Cola taste different depending on the country either to fulfil the different demands in the different market with a similar series of product. Other than that, sourcing is one of the global strategies that use in the worldwide markets. For example is Starbucks. Starbucks sell their products in many countries and region which highly depend on the global sourcing and the strategy that the headquarters use to monitor the…show more content…
The Lever of vehicles is targeted according to the global customer. For example countries from Europe, North America, Central and South America, Middle East, Africa and Asia Pacific, the Lever is design based on EcoBoost engine that can reduce radiations and improves fuel economy of vehicles. Its provide customers with shorter Return on Investment (ROI) time frame than hybrid vehicles. So it can be implemented in various types of car models with different types of engines”. CEMEX is one type of companies that use global strategy and the third largest cement company in the world. This company is the largest producer of ready mix, a pre-packaged product that contains all the ingredients needed to make localize cement products. CEMEX managed to increase its production capacity by more than 450% within ten years. It acquired companies in Spain, Venezuela, Panama, the Caribbean and the US and established them as foreign subsidiaries (The Manage Mentor,
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