Entering The Global Marketplace Can Be Challenging, Especially

1735 WordsJan 22, 20177 Pages
Entering the global marketplace can be challenging, especially for small businesses. Today 's business environment provides more opportunities than ever to square off against large competitors on the global stage. The global expansion of free enterprise has been in process for some time, and so are the challenges for global companies whether they are small, medium or large. Companies understand that expanding from regional or national focus to international competitive market requires strategic, quantifiable, achievable and time-critical goals (Werhane, 2012). Globalization has differentiating influence in the developing countries as well as in the industrialized countries that want to globalize their businesses. While the…show more content…
Along with the opportunities associated with expanding operations, comes a series of barriers that could directly or indirectly impact the business success. These could be categorized as cultural, location, political climate, economic and social challenges. Studies show that religious and ethical challenges could also strongly influence the behavior of people within a culture (Li, 2008). Aside from the social challenges mentioned above, our focus is to identify and address the core challenges that impact an organization when expanding globally. Now that we briefly addressed reasons for conducting business in foreign market, let’s dig deeper into challenges and differences to better understand global market behavior. Challenge Logistic and Administrative. Typically, as companies expand their operations and want to enter a new market, they face various challenges. There are the legal infrastructural challenges, for example in China, opening a bank account, registering your company, receive product approval in order to initiate business could take months, while in the US and other western countries, many such administrative bureaucratic tasks have been simplified (Goh & Sullivan, 2013). Thus completing such process more than anything else requires time, which is scares in today’s extra-competitive and time sensitive market. Communication. Most business professionals will agree that regardless of
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