Factors To Consider When Going Global

As globalization increases, a global strategic perspective will be as important for big companies as for those of medium size. The fast flow of information around the world has caused people to be more conscious of the tastes, preferences, and life styles of the citizens in other countries. By means of this flow of information, we are all getting to be - at different speeds and speaking from an economic perspective – global citizens. Nowadays more and more economies have opened their borders to deal and to invest abroad. Specific elements of a strategy, such as market coverage or production specifications can become global. But strategies that are global in all of its aspects are few. To successfully turn a global vision into reality, a company must carefully outline what means for its particular business to go global. This depends on the industry, product, or service, and the extension at which total success requires an internal condition in different parts of the world. So, it is important to recognize that globalization is different for every company or industry. Globalization forces a company to rethink its strategic attempt, global architecture, central competitions, and their complete common product and service mixture. The results can cause dramatic changes in the way the company does business, with who, why and how. So there are five factors that every company needs to be aware of when going global, these are dimensions with the goal of developing and to maintaining a global competitive advantage. In essence, these decisions determine a focus on continuous strategy. These factors are market participation, product/services, intensity and focus of the company's activities, government's role in the country to export, and coordination in the decision making of the market.

When talking about market participation, a key interrogative for many companies is "In how many and what countries or regions we would have to compete?" Few companies can afford to enter all the markets available for them. Even the big companies, such as General Electric, have to execute strategic discipline when choosing the markets that measure the relative advantages of a direct or indirect presence in a particular country. For middle size industries, the choices are smaller. The key to have global competitive advantages lies on creating a global resource network through alliances with suppliers, clients, and even competitors. Going global takes a lot of time and money. According to the economist George Yip, experience suggests that the path to overseas expansion is determined by demand.