The Importance Of Global Competition

What is Global Competition? Global Competition “exists when firms originate, produce, and market their products and services worldwide” (Kerin, Hartley,181). Global competition is formed by services or products provided by companies who are competing to serve customers. I feel Global Competition is important for the reduce of poverty and growth. Global Competition broadens the competitive landscape for marketers. To meet the demands of global competition the marketers must agree among two or more firms that are independent and cooperate to upheld their common goals. What are Global Companies? They are three type of companies that are listed as Global Companies: International firms, Multinational firms and Transnational firms and they all have

“International firms market their existing products and services in other countries the same way they do in their home country” (Kerin, Hartley, 182). An example of an international firm is Avon, the product is being distributed through direct selling in Asia, Europe, and South America. A multinational firm consist of different unique parts and markets to each part differently. The strategy multinational firms use is called multi - domestic marketing strategy, meaning “they have as many different product variations, brand names, and advertising programs as countries in which they do business” (Kerin, Hartley, 182). An example of a multinational firm is Procter & Gamble markets Mr. Clean because they are on different sides of the world. A transitional firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than difference (Kerin, Hartley,182). A global marketing strategy is what transitional marketers employ. A global marketing strategy is “the practice of standardizing marketing activities when there are cultural similarities and adapting when cultures differ” (Kerin, Hartley,182). The global strategy also allows marketers to realize their scale of production and marketing activities. “Global consumers are a group of consumers living in many countries or regions of the world who have similar needs or seek similar features