Evaluate Globalization And Strategy
Globalization & Strategy
Globalization is a process of interaction and integration of different nations that is sped up by technological progress such as the internet, communication, advanced mode of transport especially air travel as well as the growing number of non-English speakers mastering English language.
Strategy is a direction or scope of an organization through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil the stakeholders’ expectations.
This essay will discuss one of the challenges of globalisation, specifically global competition on Proton, a Malaysia automobile company and to evaluate the strategy adopted by Proton in response to globalization.
Proton was established in 1983 as the sole national car company. It had been monopolizing and dominating domestic market for almost 10 years until the advent of Perodua, another Malaysian automobile manufacturer in 1993. In the mid-2000, Proton started losing its market power due to; stronger local competitor, Perodua with its best-selling MyVi launched in 2005.
The removal of trade barriers has encouraged more international trade. The need of a country to increase its gross domestic products (GDP) has led to provision of favourable and friendly environment for MNCs to be established in foreign countries.
This has caused an increased competition in the market Proton is playing because some imported cars are assembled in Malaysia known as CKD (completely knocked down). Compared to a CBU (completely built-up) car, which is imported as a fully finished unit, a CKD car is priced cheaper because the car parts are assembled in local plants by local workforce. Toyota (Vios, Camry and Innova), Mercedez-Benz, Volkwagen, Suzuki, Hyundai, Mazda, BMW, Land Rover and Nissan models can be purchased at cheaper prices because these cars are CKDs. Manufacturers also use local content (Malaysian-made parts like tyres, windows, and headlights) to put together the
Globalization is a process of interaction and integration of different nations that is sped up by technological progress such as the internet, communication, advanced mode of transport especially air travel as well as the growing number of non-English speakers mastering English language.
Strategy is a direction or scope of an organization through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil the stakeholders’ expectations.
This essay will discuss one of the challenges of globalisation, specifically global competition on Proton, a Malaysia automobile company and to evaluate the strategy adopted by Proton in response to globalization.
Proton was established in 1983 as the sole national car company. It had been monopolizing and dominating domestic market for almost 10 years until the advent of Perodua, another Malaysian automobile manufacturer in 1993. In the mid-2000, Proton started losing its market power due to; stronger local competitor, Perodua with its best-selling MyVi launched in 2005.
The removal of trade barriers has encouraged more international trade. The need of a country to increase its gross domestic products (GDP) has led to provision of favourable and friendly environment for MNCs to be established in foreign countries.
This has caused an increased competition in the market Proton is playing because some imported cars are assembled in Malaysia known as CKD (completely knocked down). Compared to a CBU (completely built-up) car, which is imported as a fully finished unit, a CKD car is priced cheaper because the car parts are assembled in local plants by local workforce. Toyota (Vios, Camry and Innova), Mercedez-Benz, Volkwagen, Suzuki, Hyundai, Mazda, BMW, Land Rover and Nissan models can be purchased at cheaper prices because these cars are CKDs. Manufacturers also use local content (Malaysian-made parts like tyres, windows, and headlights) to put together the