Born Global
How the rise of the `Born Global best be explained? Illustrate your answer relevant examples.
Introduction
Most global companies, such as Microsoft, Apple, Sony and Mercedes grew big in their domestic markets before they emerged overseas and became global. For some companies this is ideal, but for others they have to go global from they start up. This essay will explain and examine the rise of born global firms. This essay is divided into four different sections. The first will give an introduction of born global phenomenon. Subsequently the next section will examine the rise of born global firms. Furthermore the characteristics and constraints with born global firms will be presented. The final section of this answer will then discuss and conclude the role of born global phenomenon in a global market. Throughout this essay a number of examples will be provided to back up and explain the findings.
Born global firms
Most companies that deal and work globally follow the same sequence of internationalisation. Often these companies start with developing their domestic market and then enter the domestic market with exporting their product. If their international sales increase, these companies progressively market and production in these domestic markets. There is however some firms that are going global before they have gone through various stages of development, these are called born global (Gillespie, Jeannet & Hennessey, 2011). The concept of born global was first used in Australia in the early 90’s (McKinsey & Co., 1993). Madsen & Servai (1997) defines global firms as: ”firms that seek to derive significant advantages from the use of resources or from the sales of outputs to multiple countries/continents right from their legal birth”.
The model of born global has much in common with the internationalisation of SME’s. The born global firms are in able to apply a unique mix of orientations and strategies to succeed in international markets
Introduction
Most global companies, such as Microsoft, Apple, Sony and Mercedes grew big in their domestic markets before they emerged overseas and became global. For some companies this is ideal, but for others they have to go global from they start up. This essay will explain and examine the rise of born global firms. This essay is divided into four different sections. The first will give an introduction of born global phenomenon. Subsequently the next section will examine the rise of born global firms. Furthermore the characteristics and constraints with born global firms will be presented. The final section of this answer will then discuss and conclude the role of born global phenomenon in a global market. Throughout this essay a number of examples will be provided to back up and explain the findings.
Born global firms
Most companies that deal and work globally follow the same sequence of internationalisation. Often these companies start with developing their domestic market and then enter the domestic market with exporting their product. If their international sales increase, these companies progressively market and production in these domestic markets. There is however some firms that are going global before they have gone through various stages of development, these are called born global (Gillespie, Jeannet & Hennessey, 2011). The concept of born global was first used in Australia in the early 90’s (McKinsey & Co., 1993). Madsen & Servai (1997) defines global firms as: ”firms that seek to derive significant advantages from the use of resources or from the sales of outputs to multiple countries/continents right from their legal birth”.
The model of born global has much in common with the internationalisation of SME’s. The born global firms are in able to apply a unique mix of orientations and strategies to succeed in international markets
References: Deese, W., 2010, Small & Meium-Sized Enterprises: Characteristics and Performance. U.S. International Trade Commission, No 332-510 Gillespie, K., Jeanett, J. & Hennessey, D., 2011. Global marketing. 3rd edition. Nelson Education, Ohio Oviatt, B. & McDougall, P,. 1994, “Toward a theory of international new ventures”. Journal of International Business Studies, Vol 25 No 1. pp. 45-64. Madsen, T. & Servais, P,. 1997. The Internationalization of Born Globals: an Evolutionary Process? International Business Review, Vol 6 No 6. pp. 561-583 McKinsey & Co.1993 Ohmae, K,. 1990, The Next Global Stage, 1st edition, Pearsons, New Jersey Onkvist, S., & Shaw, J., 2009 Salazae, A & Sawyer, S., 2007, Handbook of information Technology in Organizations and Electronic Markets, 1st edition, World Scientific, London