Case Study: Vizio

It’s not news that Sony is a global company or that (25%) of all Play Station profits’ for the past seven years came from Sony to Japan. After all that’s what international marketing and the global economy are all about, companies like Sega, Nintendo, Microsoft, X-Box doing business around the world. The global economy now reaches every corner of the United States. Current interest in international marketing can be explained by changing competitive structures coupled with shifts in demand characteristics in markets throughout the world. With the increasing globalization of markets, companies find they are unavoidably enmeshed with foreign customers, competitors and suppliers. A significant portion of all products made in the United

Some costs are expensive: freight cost from China, inventory (lead-time increase because of shipping), and quality control (testing shipped products from China in the US require some cost; time and money)

In trying to strictly buy just American made products there are going to be pros and cons but no matter what you do there are always pros and cons. The pros to doing this would be better quality as the American made products are normally much nicer and more reliable, just think if you buy from American companies it will probably be so much easier to contact the company you are trying to buy goods from because there was always that trouble trying to get ahold of a supplier say if he was based out of china and maybe he didn’t speak English maybe he did but then you would have to work out a time to call as the time would be completely different it may be 2 p.m. here and it might be 4 a.m. there it was always just a hassle. Another Pro would be with all the new companies that would start business in America because everyone wants to buy products strictly from America that could have huge benefit on the unemployed that would give more people jobs and it would have a chance to lower the unemployment rate. But if the American based companies want to stand a chance they would need to sell goods to where the people have to pay for them they can’t be public goods. If they are public goods everyone would take advantage of the company because the company can’t exclude them now they have a free rider problem. So the only way to make a profit is through selling these products.

It’s hard to say the products may be cheaper but the quality of the products may also suffer when production is moved overseas. The really isn’t any appliances that are made in the United States any more it’s common for companies to move their factories overseas in order to cut cost. I I were to stop buying the appliances I used to using and changed over to another brand chances are that brands products are made overseas as well so either way I am purchasing a produced that is manufactured overseas whether I say with the first company or move on to another.

Opportunities: New streams of revenue due to new product. New streams of customers due to new-product demand. New, lower cost contracts with new suppliers. Possible employment of foreign workers to replace costly domestic workers.

Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9.500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company. This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization

If the labor market is no concern to you then maybe the environment is. Many foreign countries have little to no regulations on their manufacturing facilities to protect the environment. The drawback of this makes it difficult for American companies to compete. Paying fines or accumulating additional costs to meet energy standards is not cost effective. This can affect the

Work in progress turnover is almost 13 times higher than the industry average which could due to the long shipping time of key components from overseas. Expanding Gemini’s Mexico manufacturing facility will not only contribute to cost reduction, but will also reduce the work in progress turnover. Relocating its manufacturing to Mexico will also be supportive for opening Central and South America markets. Mexico is geographically in the middle of the continent and surrounded by oceans. This will benefits for both side on the continent on shipments and also provide a lower labor cost for Gemini. See Table 2 and Table 3.

and the foreign distributor, often ensure an extensive portion of the financial costs are absorbed by

To increase the education and stander of living of the country will ultimately help the company in both ways. The company gets a new and cheap workforce. Also it gets the new segment of the market to sell the products.

Labor costs in the United States are much higher than in many parts of the world. Consequently, the costs of production for labor-intensive manufacturing can be significantly reduced by moving factories overseas mainly to third world countries this is a common practice of Nike who outsource there manufacturing to other companies in countries such as Thailand and Indonesia.[ ]

The negative effects of globalization come like a fringe with its advantages. As countries companies and consumers are benefitted through globalization process, it is also bringing some disadvantages for them.

Royal Philips NV and Matsushita (owner of the Panasonic brand among others) are two of the world’s biggest electronics multinationals. After successfully building their global empires in the early twentieth century, they have both suffered financially in recent decades. It is therefore interesting to look at why this has happened and what their future prospects are.

Globalization is something that has been occurring since early in the history of entrepreneurs, and something that will not be going away anytime soon. Businesses can enjoy many benefits from globalization that include an increased audience to market their products to, and quicker sharing of innovative ideas. The advantages of globalization are just as much a disadvantage. The increase in competition between domestic and foreign business has lead to a decrease in employment and an increase in outsourcing. Businesses need

Mexico is the top trading nation in Latin America and the ninth-largest economy in the world. No country has signed more free trade agreements – 33 in all, including the two biggest markets in the world, the US and the EU. Altogether these signatory countries make up a preferential market of over more than billion consumers. Much of the FDI in Mexico is attracted by the country’s strategic location within the North American Free Trade Agreement, which has positioned it as a springboard to the US and Canada. Other attractions are competitive production costs and a young, skilled workforce, together with political stability and an open economy.