STAGES FOR GLOBALIZATION FOR AN ENTERPRISE

Stages Objective Physical movement of goods and services from the country of its origin. Strengthen and stabilize one overseas market. Action Plan (i) Identify one country. (ii) Focus on one product or services. (iii) Explore opportunity for exports. (i) Build a strong relation in one market. (ii) Promote brand name with customers and channels. (i) Narrow down to one local partner. (ii) Locate an ideal place for production. (iii) Workout for financially together. (i) Develop fast network in the neighbouring countries. (ii) Setup warehouses / subdealer network in the region. (i) Set up subsidiaries. (ii) Develop strong systems. (iii) Induct right people with performance. (iv)Flexible to local environment. Anticipated risks and hurdle (i) Local resistance for bringing. (ii) Technical and commercial barriers. (iii) Competitive forces from local and imported goods. (i) Local competitors pose threats. (ii) Price war is inevitable. End Result (i) Entry into one country- successful. (ii) Learning experience in a country outside. (i) Strengthen one country by overcoming all the hurdles. (ii) One or few importers extend cooperation and support for constant flow of goods. (i) Local production brings down the cost. (ii) The enterprise becomes close to the customers. (iii) Brand loyalty is built. (i) Access in the whole region. (ii) Easy to experiment in other regions. (iii) Revenue is increased. (i) Global take off assured. (ii) The enterprise has a competency in skill and knowledge to go global.

Stage:1

Stage:2

Stage:3

Establish manufacturing base in the importing country. Spread the distribution and increase production in the region.

Stage:4

Move to other regions by investing and producing.

Stage:5

(i) Competitors increase their production capacity. (ii) Local regulations on labour, transaction and infrastructure may trouble the operation. (i) Every part of the region works differently. (ii) Rules are not uniform. (iii) Demand level is not similar in every country. (i) Cross cultural complexities. (ii) Local adaptability. (iii) Promotional barriers.

Stage:6

Global mindset, customer orientation and constant innovation.

(i) Organization to be global. (ii) Investment to be global. (iii) Technology to be global. (iv) Real optimization of resources takes place.

(i) Challenge on governance. (ii) Ethical standards. (iii) Concern for the locals. (iv) Human Resources.

(i) Global investment. (ii) Global competency. (iii) Global branding. (iv)Global Organization.