The Effects of Globalization on Companies' Strategies: Clinique Case Study

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Global and Domestic Marketing Strategies The process of globalization has important effects on companies' strategies. These effects mostly refer to their marketing strategies that must be adapted to the increasing competition in most industries, and to the challenges of the business environment. In order to improve their position on the market, some of these companies prefer to expand their business on international level. This means they develop global and domestic marketing strategies. This is also the case of Clinique, one of the most important cosmetics producers. Clinique produces and sells cosmetics products for the face and body, and make up products also. Trade practices and agreements are an important factor that has significant effects on companies' marketing activities. There are numerous trade agreements that are developed between neighboring countries, or between members of international organizations. This situation can be observed in the European Union. Member countries that trade within the E.U. benefit from important reduction of taxes. This makes it difficult for companies outside the E.U. to address these countries, because they must pay these trade tariffs that can behave like a barrier in certain situations. Demographics and physical infrastructure represent other factor of great importance in making marketing decisions. The products of Clinique are developed for certain customer segments. This means that the company must analyze thoroughly the

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