Social, Political, And Geo Economics Challenges Affect A Global Company 's Use Of The Internet Essay

Required Resources Keegan, W. J., & Green, M. C. (2011). Global marketing: 2011 custom edition (6th ed.). Upper Saddle River, NJ: Prentice Hall / Pearson. Supplemental Resources Colton, D.A., Roth, M.S. & Bearden, W.O. (2010). Drivers of international e-Tail performance: The complexities of orientations and resources.

In a market with a vast amount of competitors offering similar products, it is vital that competitors stay at the front of the market. In order to do this, companies, such as Blue Nile, must increase globalization efforts. As the market shifts worldwide, so must companies. Blue Nile, for example, has recently seen success in the worldwide market, although international profits only make up 13% of revenue. Also, companies must offer reliable customer service, such as Blue Nile offers. Along with reliable customer service, online competitors must focus on reliable shipping, lowering costs when applicable. Finally, marketing efforts must be vamped to ramp up customer traffic and build larger customer bases.

Businesses and business communication could be greatly impacted by cultural differences, especially when conducting business internationally or with people of various cultures. Understanding cultural differences is a key to succeed at communicating or conducting businesses since culture influences how people think, communicate and behave (Salacuse, 2005). Having a deep comprehension and adapting to a new culture become more significant when someone is traveling overseas to re-locate him or herself and work at a different country.

(P6) examples of the impact of globalisation on organisations that use the internet for marketing.

International business has grown rapidly because of developments in communication technology, business confidence, freer borders, and increased global competition. Some of the strategic imperatives of international growth include the need to leverage core competencies, acquire resources, seek new markets, and match the actions of rivals. Although strategic imperatives indicate why firms wish to internationalize their operations, significant changes in the political and technical environment have no doubt facilitated the explosive growth in international business activity that has since World War 2. The growth of the internet and other information technologies is likely to redefine global competition and ways of doing international business once again. We will explore many of these factors in our review of the Davis Group case study.

Companies over the world are striving to become multinationals. Globalisation and corresponding developments in transport and communication technologies have helped companies achieve this objective and find worldwide markets. Needless to say, aspiring companies need research and knowledge about markets to back their willingness to expand to foreign markets. All markets are different and pose different challenges to operate. For instance, each product has its own unique selling preposition and a one-size-fits-all strategy is not applicable across the global markets. It is important to have knowledge about factors such as people’s potential to buy the product,

Cultural barriers become more prevalent as we move into an increasingly global business environment. Work forces and customer

The combined effects of the Internet and globalization have made the challenges of implementing strategic plans and initiatives even more challenging and difficult. The long-standing assumptions of foreign markets being comparable to domestic ones of a given corporation have long proven false, leading to significant shifts in the strategic planning process for enterprises globally today (Hassan, 2010). In reality the Internet has made every business a global one; each has the opportunity to attract, sell and serve customers globally over e-commerce platforms that can be enabled and operational within weeks. The speed of competition is increasing due to the combine effects of globalization and the Internet. The focus has now shifted away from mass production to mass customization due to the Internet and its ability to reach foreign markets with relative ease. This shift from mass production to mass customization has also been accelerated by a global prioritization of services, as they are capable of generating greater gross margins and have business models that require greater tailoring to specific foreign market needs (Luo, Chang, Su, 2012).

The growth, integration, and sophistication of ICT are changing our society and economy. The emergence of the Internet as a general communication channel has opened the opportunity for e-Commerce to expand worldwide. E-Commerce is now viewed by researchers and practitioners as providing the future direction in which organizations must move. Diffusion of the Internet has led to significant shifts in the methodology of operating business globally. Therefore, it is both an interesting and challenging issue to address, explore, and conceptualize proliferation of e-Commerce and also adoption and cultural resistance and evolution for global consumers.

The global economy has become more competitive and ambitious as companies of all extent pursue to bolster and broaden beyond domestic borders. The Internet and knowledge technology are among circumstance that have made it achievable for smaller firms to endeavour toward foreign markets.

There are almost two billion Internet users around the world. The top two countries with the highest user’s number are China and the United States. These two countries also have the largest consumer markets in the world (Belch, 2012, 494). A large market combining with a huge internet user group makes the current of internet marketing irresistible. In addition, most companies choose to have free markets, so the trade barrier declines and the economic globalization increases. These factors speed up the international trade competition. Giant brands like Boeing, Apple, and Walmart expand and target quickly to all over the world. It is easy to tell those companies play an important role in the international business.

The Internet is a critical resource for the development of international business, and it can be utilized even by businesses that do not otherwise enjoy economies of scale. Online marketing helps companies reach foreign clients effectively without having massive scale, and even transportation networks are becoming better set-up for small business to succeed internationally (Askin, 2011).

In recent years business-to-business international Internet marketing (B2B IIM) has received widespread attention. Avlonitis and Karayanni (2000), Hamill and Gregory (1997), Hoffman et al. (1999), Porter (2001) and Quelch and Klein (1996) conducted in-depth studies to understand those factors that are needed to enhance B2B IIM implementation. Various articles, empirical research, and secondary case studies on B2B, Internet, international marketing, and information technology were studied. The findings of these studies identified 21 factors that have a direct impact on successful implementation of the B2B IIM. These factors

The prevailing arena in business this millennium has powerful forces which are transforming markets and spectacularly changing ways of doing business. There has been increased movement of people, goods and organizations across borders which have resulted in the emergence of global market segments and the growth of globally integrated markets. Advances in communications and information systems technology have shrivel distances, linking markets through flows of information, images and ideas across markets. These trends facilitate the management of operations on a global scale and accelerate the need to deal effectively with global competition. As a result,

The global marketplace consists of business transactions amongst all nations around the world that are not restricted by geographic locations. This worldwide scale of sales, purchase and exchange of goods and services unsurprisingly makes it much more difficult to manage, as opposed to a smaller, domestic business. It is important for managers of the global marketplace to utilise the resources available, in order to effectively and efficiently deal business outside of country borders. Web 2.0 Technology in particular, is a fairly new but extremely successful and growing tool evident in the international marketplace. It refers to the World Wide Web and its use as a platform to gather intelligence across the globe (O’Reilly, 2009).