Globalization or Internationalization
In today’s world, companies are facing a globalized and extremely competitive business environment that has been challenging corporate decision making. Companies have been choosing to look for possibilities outside their domestic markets for various reasons in attempt to increase revenue and profits and keep up with or surpass competition but “[rather] than focusing solely on beating the competition, strategies must be created that enhance the value for customers” (Lee, 2013).
Businesses’ engagement in international trade and investments has been vital source for company growth (Ball, 2013). Can this be the only way to gain further market share and beat competition? Information technological advantages of the past decade have been globalizing markets. Internet and internet enabled ecommerce have been changing the competitive landscape of the business word by making it more dominant and global: new businesses, innovative products and services are emerging globally that can be potentially disruptive for already established businesses. 2007 was a challenging year for Barnes & Noble. Not only has Amazon had been capitalizing on bookstore profits, but also introduced its electronic reading device, the Kindle in 2007. In response, Barnes & Noble quickly repositioned its core to focus on both enriching store experience and selling higher-margin products (such as gift items and children books) while focusing less on regular low-margin bookselling. Furthermore, it launched its own electronic reading device, the Nook, and was able to leverage its physical store presence to its advantage by giving physical access to the new product. The only way to stay in the competition is by responding quickly to these disruptions while ensuring undisrupted business operation, reassessing strategy and business model (Gilbert, Eyring & Foster, December 2012).
However, foreign direct investments must be made to establish and expand operations abroad (Ball, 2013). The dynamic capability
Businesses’ engagement in international trade and investments has been vital source for company growth (Ball, 2013). Can this be the only way to gain further market share and beat competition? Information technological advantages of the past decade have been globalizing markets. Internet and internet enabled ecommerce have been changing the competitive landscape of the business word by making it more dominant and global: new businesses, innovative products and services are emerging globally that can be potentially disruptive for already established businesses. 2007 was a challenging year for Barnes & Noble. Not only has Amazon had been capitalizing on bookstore profits, but also introduced its electronic reading device, the Kindle in 2007. In response, Barnes & Noble quickly repositioned its core to focus on both enriching store experience and selling higher-margin products (such as gift items and children books) while focusing less on regular low-margin bookselling. Furthermore, it launched its own electronic reading device, the Nook, and was able to leverage its physical store presence to its advantage by giving physical access to the new product. The only way to stay in the competition is by responding quickly to these disruptions while ensuring undisrupted business operation, reassessing strategy and business model (Gilbert, Eyring & Foster, December 2012).
However, foreign direct investments must be made to establish and expand operations abroad (Ball, 2013). The dynamic capability
References: Ball, D., Geringer. J., McNett, J., and Minor, M. (2013). International Business: The Challenge of Global Competition. McGraw-Hill, Irwin. Pp. 55-56. Gilbert, C., Eyring, M., & Foster, N. R. (2012, December). Two Routes to Resilience. Harvard Business Review, volume 90 (number12), 66-73. Hong, H., Doz, Y. (2013, June). L’Oreal Masters Multiculturalism. Harvard Business Review, volume 91 (number 6), 114-120. Lee, W. J. (2013). International Business, Economics and Cultures. Lecture 1. Boston University. Summer 1 Semester, 2013.