Marketing Assignment On Globalization And Its Impact On Marketing Strategies
Prepare a dissertation on “Globalisation and its impact on marketing strategies”.
In the marketing assignment of globalisation and its significant impact on strategies of marketing, the background of the research, aims and objectives based on research, the research questions, rationale and the outline of the research. Research methodology has also been analysed in the report. The effective methods of research such as data collection, data analysis tool have been demonstrated. In the fourth section of the report, research findings and empirical data has also been evaluated. A detailed analysis has also been done based on illustrative examples. The literature review has been discussed based on research questions.
The overall research has been conducted based on the qualitative method. Hence, considering the mentioned method, an analysis has been made wherein an interview has been conducted with selected participants from five multinational companies. After acquiring all the collected data, it has been observed that most of the higher authorities responded about the key impact on strategies of marketing in terms of product, pricing, promotion and marketing communications. The data has been collected from the international giants like Nestle, McDonald, Unilever, Woolworths and Tesco. Furthermore, the overall research paper has been concluded with the proper findings, research limitations, and ethical consideration, future research scope and recommendations.
I would like to express my sincere gratitude to the University, my guide, my friends and the selected MNCs who helped me to complete this research successfully. I would like to thank especially to the participants of the MNCs who helped me a lot to gain information about my queries. I sincerely thank my project guide who helped me to carry out this project with fewer interruptions. I wish to express my gratitude to the members of the selected MNCs who provided their valuable time and information, which helped me to complete this study.
I would also like to thank the head of University for providing such learning opportunity to gain knowledge about research and to enhance my skills and knowledge to an unlimited extension.
Chapter 1: Introduction
The introduction is the first chapter of a research project, and it adds very crucial and valuable information to the research as it clears about the background of the research in short and illustrates the aim and objectives of the research. The aim and objectives are a roadmap of the research success because it helps the research to carry out the study according to the specific framework that is based on the research objectives.
The increasing demand of globalisation has changed the business practices in an extended way. The market demand and the demand of the customers also changed dynamically due to the availability of local as well as global brands in the market. There are major MNCs, or multinational corporations are there which have extended their market all over the world through successfully applying the globalisation (Moravcikova, 2018). The success factor of these businesses not only depended only on the aim to expand the business globally, but it depends on other factors like low-cost operations, excellent marketing strategies, human resource allocation and financial perspective (Ristovska and Ristovska, 2014). Marketing plays the most significant role to make an entity successful, which wants to operate globally. While working in the home country, the strategies need to be developed based on the home country rules that are well known by entities. While the same entity plans to expand its business in another country, it means the entity has to go through end number of research to know about the legal and political factors, the economic background of the target market, and lifestyle pattern of the target market and many other things that define the market (Ogbu, 2017).
Marketing plays a key role to make the globalisation strategy successful for the companies because it works as a key communication tool that aware the target market about the latest upcoming products or newly launched products. While entering a new market via globalisation, there are severe obstacles to present the product to the target market as adequate (Muciimi and Ngumo, 2014). There are existing MNCs who are availing the same products along with the local competitors. Hence, it became quite challenging to market the product. Marketing plays a key role for the globalised businesses as they have to develop all the pricing, place, promotion, distribution strategies based on the adaptability of the new market as well as the capacity of the entity. There should always be a balance between the two to achieve ultimate success. The present dissertation will reveal how the globalised firms develop their marketing strategies while entering a new market. The study will also reveal how globalisation of the entities impact on the marketing strategies of the business.
The key aim of the research is to find out the actual influencing factors of globalisation on the marketing strategies of organisations. The research aim of the study specifically helps the entire research to work on finding the impact of globalisation decisions of entities on their marketing strategies. The research aim of the dissertation help to define the objectives of the research, which is further structured the question of the research.
The objectives of the dissertation are based on the aim of the research, and the objectives are the following:
- The first research objective is to identify the key challenges faced by global firms while developing marketing strategies. This objective of the research will help to find out the key challenges of marketing strategies to attract customers in the global market.
- The second objective is to highlight how the globalisation strategy of the firms influences their marketing strategies while planning to enter a new market. This objective will help the study to evaluate the core thing of the study that is the impact of globalisation on marketing strategies.
- The third objective is to assess the real impact of globalisation on the marketing strategies in the light of major MNCs and their way to control the external factors. The third objectives add more value to this research as it will highlight key aspects of marketing strategies due to the impact of globalisation. The relevance of this objective is stronger because of involving major MNCs.
- The fourth objective is to recommend the global firms to address the issues related to marketing strategies and the ways to overcome the impact of globalisation while entering into a new market.
- What are the key challenges faced by global firms while developing marketing strategies?
- How the globalisation strategy influences the firm's marketing strategies while planning to enter a new market?
- What is the real impact of globalisation on the marketing strategies of major MNCs?
- What are the recommendations for global firms to address the issues related to marketing strategies?
The importance of the present research underlies beneath the information that it will evaluate throughout the study. The research will highlight key aspects of globalisation that impact the internal decision of a company and what are the ways the global firms manage the external environment of the business to gain ultimate success (Moravcikova, 2018). However, the research topic is based on only on one area of business that is marketing, but it will provide a diverse range of information as marketing is related to the product success factor of a business that is relevant to every aspect of the business (Ogbu, 2017). The findings of the study will add valuable information to the existing literature as the research will focus mainly on global firms, so it will be valuable for many start-ups and existing firms who are planning to operate globally. The aim of the research matches the expectancy of its findings. There are many previous types of research that are conducted in a similar topic. The present research will add more valuable information about the impact of globalisation on marketing strategies on the realm of existing literature (Ogbu, 2017). The importance of the study is lies under the findings that will provide with this research. The marketing strategies are a key aspect of a business. Hence, managing the globalisation impact is a crucial thing for companies.
The outline of the research shows what things will be added in each chapter of the dissertation.
Chapter 1: Chapter 1 is an introduction, which is already discussed above. This chapter highlights about research aim, objective, question and background of the research.
Chapter 2: This chapter is named as the literature review, as it will present the collected information from peer-reviewed journals, articles and books related to the research topic. The literature review will illustrate key aspects of the research topic and provide strong background information, which will support the study. In the literature part, there will be comparison and contrast of the author’s view while presenting the information about the research topic.
Chapter 3: The third chapter discusses research methodology, in which the research philosophy, research method, data collection method and analysis tool used for the study are described with adequate justification.
Chapter 4: The fourth chapter describes the empirical data that is collected for the study and the key findings that can be provided with the help of the collected data.
Chapter 5: The fifth chapter is basically about the analysis, in which the collected data will be analysed to extract the outcomes. After analysing the data, the exact findings of the study will be interpreted for a better understanding of the readers.
Chapter 6: The last chapter concludes the overall summary of the research, in which the key consideration, such as ethical factor, research limitation is also added. This chapter also includes certain recommendations for global firms, which can solve the problems faced during marketing strategies development and implementation because of globalisation. The conclusion chapter also adds scope for future research.
Chapter 2: Literature Review
It is the process through which the world became interconnected, and the countries massively exchange culture and trade. Globalisation is a strategy through which the production of goods and services are increased. One of the common ways of globalisation is trading activities that convert national firms into multinational corporations. According to Gorodnichenko, Svejnar and Terrell (2017), there are certain benefits that globalisation caused that are the operation of an entity in more than one country, availability of product and services of an entity in more than one country, increased international trade and free movement of goods, capital and services. There are certain challenges that occur at MNCs due to globalisation, and one of the major challenges in developing marketing strategies. The reviewed literature discussed the key challenges faced by global firms while developing their marketing strategies and how they impact on the business.
Key Challenges Faced by Global Firms While Developing the Marketing Strategies
In history, the rising globalisation and the access to improved expertise have entirely transformed the method the international firm does companies and the means they do the promotion. Considering these transformations, global firms are experiencing disputes that are fully dissimilar than they practice before. As per the Statista, in 2020, the international digital residents of vigorous internet operators were tremendously more than 4 billion (Animitevabg, 2021).
Fig 1- Worldwide Digital Population in 2020
Sources- (Animitevabg, 2021)
The figure that has been shown above portrays the complete worldwide population that is more than 59%. Indeed, access to the internet and its growing utilisation in daily life is not the complete representation. At present, they have new emergence of advanced technologies like Artificial Intelligence, Big Data, Cloud computing and Internet of Things. The unit then, global firms such as Amazon, Google, and Facebook and so on are basically changing society. For example, within the international firm like Amazon, people can order a product from any part of the globe and obtained it shipped within a few days. However, as compared to 100 years before, it would take months to cover the same distance and get delivered the purchased product (Doingbusiness.org, 2021).
Ruiz (2021) states that globalisation and digitalisation actually change the perspectives of international marketing strategies, wherein global firms face major challenges while developing marketing strategies. Hence, a number of key challenges have been listed and discussed according to the following grounds:
Increased Competition- The foreign direct investment growth is one of the key sign of increased international competition as it has increased four times faster than that of the world output. This strategy is mostly used by global firms to make international production channel. Through an investment of equity by a parent corporation in a branch, affiliate or subsidiary situated in other nation, the parent corporation acquires managerial control of a firm situated in the other nation (Islam et al., 2019). Mainly, foreign direct investment is used by nations to build overseas subsidiaries that will generate products and services for retail in international and domestic markets. However, increased competition generally refers to getting access to a new market which eventually means that the firm is about to expose to more international competitors.
Tariff Barriers- It refers to duties and taxes levied on imports. International marketers discover it challenging to acquire sufficient revenues when retailing goods in overseas nations (Egan and Guimarães, 2016). At certain times, in order to avoid overseas goods and services or encourage local products, deliberately the policies of the tariff are planned that limits global activities of marketing. Regular change in the rates of tariff and fluctuating rates of tariff for several groups of goods make doubt for merchants to deal globally. Antidumping duties imposed on imports and protective plans make tough for exporters (Qualifyuk.com, 2013). Thus, it can be said that the variation in tariff within the goods rate can be very challenging for international firms to develop international marketing strategies.
Significant Diversities- Different nation have their own culture and civilisation, and this one of the key reasons for international markers to cause special problems. International customers show signs of significant communal and cultural diversities in term of requirements, desires, languages, habits, preferences, capacities of purchasing, basic patterns of purchasing and consumption (Referenceforbusiness.com, 2021). Customers with diverse characteristics within the international platform are actually challenging for international marketers to identify and integrate. As a comparison to domestic and local markers, it is more challenging to know consumers' behaviour of other nations. On the other hand, religious and language diversities are the key challenge for international markers. As English is identified as an international language to deal with business terms, but there are more than 5000 languages across the globe.
Political Instability- In the international platform, there are different systems of politics, financial system, and political instability wherein a number of actual challenges that global marketers have to experience. The environment of the political system in different nations courtiers provide possibilities or create challenges for global firms. Therefore, it can be said that the international political atmosphere for the long-run trend is uncertain and are not predictable because the financial policies of different countries do have a direct influence on global trade (Jalloh, Djatmika and Putra, 2017). An extreme variation in these policies makes eternal difficulties for global firms. On dealing with global markets, global political and legal atmosphere require exceptional consideration.
Fluctuations in Exchange rates- This is considered to be one of the key reasons wherein international traders should be aware of when expanding their business internationally or developing international marketing strategies. Currencies are dealt with regularly, and rates are subject to fluctuation. US Dollar, Indian Rupee, Japanese Yen, and European Dollar and so on are discounted or acceptable at domestic and global markets with other currencies (Chang-Kuen Moon, 2014). However, when exceptional and unpredicted motions in exchange rates among the two nation's courtiers make severe issues on the settlement.
Ethics and Norm Challenges- In the international marketing firms, ethics indicates to moral standards, norms and principles of conduct administering the behaviour of the firm as well as the individual. They are intensely addressed in official rules and laws. Within the international business context, different codes of conduct are precise that an individual global firm has to monitor. Hence, the process of globalisation has focused on a number of general ethics internationally. When it comes to international business ethics, corruption is the other challenging factor.
Racism and Terrorism- It is considered to be an international issue as well as a global problem. Globally, the individual is living under continuous panic of terrorist attacks everywhere internationally. In order to deal globally, it is not financially risky, yet there is a risk to life for every individual around the globe. On the other hand, racism also limits the activities of international business dealings. Currently, racism and terrorism have been spread extremely wherein it is difficult for the international traders to develop marketing strategies in order to expand their business and deal with the people that are from different nations with different culture and civilisation.
The influence of globalisation strategy on a firm while entering a new market.
The concept of entering a new market and globalisation
By selling services or products in another country, firms are able to introduce their company to huge markets, and this is also increasing the profits and sales along with extending the life cycle of its products. The question about firms entering and operating in foreign markets has been a consistent topic of research in business dynamics based on strategic marketing. International market entry is a major form of international expansion, and globalisation has played a major role in terms of influencing new market entry. According to Myatt (2019), globalisation creates an opportunity for businesses to increase their revenue streams by diversifying the risk and increasing brand equity. There has been a significantly strong interest in the organisation and global strategy over the last few decades as several suggestions have been recommended to inspect the issue surrounding it. According to Muciimi and Ngumo (2014), the firms that treat specific country markets differently are potentially replaced by global organisations that sell a similar standard of products to every part of the world. For achieving competitive advantage, it is mandatory to manufacture superior quality of products at low prices as the tendency of the global customers is to choose products that are of superior quality but low priced. This indicates that the optimum global strategy is based on producing a single standardised product and accordingly sells it by a marketing programme that is standardised. However, there have been several disagreements on the requirement of an effective global strategy that can potentially exploit the differences in output and input markets for achieving scale economies.
It is believed that an international strategy requires a variety of products so that the investments in distribution channels, product names and technologies can be shared. There has been a special emphasis on strategic flexibility in the perception of a global strategy by creating options that can turn uncertainties of the unstable world economy to an advantage in the business. The imperative of strategy is to exploit the various sourcing, shifting of production profit based on exchange rates and cost factors. According to Quelch and Hoff (2014), it is crucial to be responsive for firms in the local market conditions for establishing an organisational structure where information transfer is encouraged. Global operations must be designed to maximise concept development efficiency in terms of local market delivery. Therefore, based on globalisation, it is essential for firms to 'act local' but 'think global'. Overall, globalisation has worked collaboratively with localised forces in terms of transforming several industries, and the success of those industries has relied on national flexibility and global efficiency. Globalisation has changed the concept of entering a new market with the ability to shape and manage marketing strategy across general limits by acquiring worldwide incorporation and maintaining local litheness. The optimum worldwide scheme is based on the expansion of national aptitude by maintaining a comprehensive perception as the future changes will be based on developing capabilities of internal learning that can motivate innovation and adaptation.
The impact of globalisation on the marketing strategies of a firm
Worldwide companies comprise all business connections that take place between two or more region and nations that go beyond the political borders. Globalisation is a worldwide trend that connects economies beyond the borders, and the firms are no longer confined in their borders. In the last two decades, the entire world has experienced globalisation. This is one of the major cause behind the increase in financial, social, economic, cultural, market, political, etc. interdependence among nations. According to Johansson (2015), the entire marketing strategy of businesses has been inevitably affected by the change process of interdependence. There is a need to study the effects of globalisation on a firm's marketing strategy, as there are certain aspects of globalisation that remains to be explored. Superior marketing is a sustainable source of achieving a unique competitive advantage, and thus the main focus should be on building such an advantage. The phenomenon of globalisation is complex, given the scarcity of empirical research that can investigate its effect on the business. Developments in information technology, along with the removal of investment and trade barriers, have created drastic changes to business practices around the world. The world has gone through globalisation with the increasing cultural and social inter-connectedness along with economic and political interdependence. In addition to that, there have been many aspects of organisational restructuring caused by globalisation, particularly in the marketing strategies as the formation of alliances has been a remarkable trend in the business over the last few decades. According to Islam et al. (2019), globalisation is associated with the integration and liberalisation of a country's economy with an unlimited flow of information. Firms are most likely to engage in global marketing strategy based on the customer needs and preferences that can increase the chances of finding homogenous groups within each region of business operation.
A typical strategic assumption is that a uniform global positioning requires cultural similarity along with life cycle stage competition. However, even in those countries where the requirements do not match, a marketing strategy based o standardised global positioning may still work. According to Thoumrungroje (2014), globalisation can be classified into four main segregations of political factors, macro-economic factors, organisational factors and technological factors. Over the last few decades, the world has witnessed spectacular transformations in the international and worldwide marketplace with the trends more towards interdependence among countries based on numerous transformations in the business environment that have taken place with time.
Figure 2: Globalisation effect on a firm's performance
Source: (Thoumrungroje, 2014)
Due to globalisation, businesses are massively impacted by transformations in both market threats and opportunities, and it falls under the macro environment. Due to globalisation and effective marketing strategy changes in the business environment have enabled businesses to evaluate new markets at minimum costs by restructuring business operations through the exploitation of cheap resources across the world. A massive volume of flows in cross-border trade, technology and investment indicates the increasing opportunities driven by globalisation. Therefore, globalisation tends to increase potential in the market along with potential in trade and investment through a firm's availability of resources.
Threats of the global market on a firm's performance
Despite globalisation enhancing marketing strategies of firms, it also increases the competition level among firms. The meeting of macroeconomic government regulations associated with globalisation has made it easy for businesses to enter various geographical locations and resulting in an intensely competitive atmosphere. Firms in today's world are operating at different levels, which indicate that globalisation has brought a new competitive landscape that presents tremendous threats to a firm's economic aspect. Consumers have been able to gather information about products and services at lower costs which have made the entry of alternative products easier. With the growing number of competition, resources have become exceedingly scarce as firms are now facing flexibility in pricing based on the intense competition with the resistance of the buyers that have led to a lower return rate. According to Kardagli (2016), there are only a few researches that have addressed the impact of the global market on firms' performance.
There is also a factor of uncertainty associated with globalisation that refers to the demand uncertainty and increasing complexity in the market. Firms often face increasing difficulties in decision-making, and planning has the demands difficult to forecast. Since more number of firms is now participating in the global marketplace; this has led to the forecasting of demands even more difficult. In addition to that, technology is changing at a rapid pace that is making the information of new products easily available to customers. According to Gorodnichenko, Svejnar and Terrell (2017), globalisation brings pressures and opportunities for domestic firms in international markets to improve their competitive position. Innovation is assumed to be the conduit that affects productivity as firms close to the frontier of efficiency are expected to compete with their increased efficiency. Therefore, firms that are far away from the frontier can potentially be discouraged from the competition. It is essential to examine the effect of product competition by innovating activities through the introduction of a new product life cycle.
The relationship test between competitions has led to an increase in output inequality, as there are no positive effects of efficiency in domestic firms that are holding effective relationships with foreign firms. According to Akdogan (2018), globalisation has transformed the demand and supply conditions across the globe by affecting the overall competition on the performance of a firm. There has been a tremendous increase in opportunities among resources and industries as there has been an increase in the immigration rate that have provided people with the opportunity to develop socially and economically. Organisational performance is considered as the profitability and survival of an organisation that can measure the primary in both services and manufacturing. Thus, the globalisation impact is causing has caused all countries to come together and reduce investment and trade barriers that have proved to be beneficial for all countries because of easy investment and trade. Overall, globalisation can potentially make more efficient markets that every economy should strive for and the formation of an efficient market can be determined by the fact where buyers are willing to pay for imported goods or services.
Globalisation and culture
Culture varies from nation to nation as there are different ways people in one specific country get inspired by different norms, values, beliefs, traditions, etc. For any firm to achieve a competitive advantage in international business, it is important to understand the cultural differences based on which marketing strategies can be determined. Advertising, free trade policies, brand effectiveness greatly influences culture, and the best thing about culture is that it is learnt and not genetically inherited. Globalisation based on culture is foreign culture's infiltration, but there are arguments that suggest that despite culture borrowing and adapting to global features, it often retain exceptional features. According to Peprah, Ocansey and Mintah (2017), because of certain unique cultural features’ existence, global firms require marketing strategies that are not acceptable by the intended customers.
Due to the differences in culture, there is no fixed choice of strategic standardisation, but rather there is a combination of standardised and localised strategies based on the cultural elements' convergence. As per Rique and Sumeet (2019), international or domestic marketing both needs culture to succeed. Given the complexity of culture, it takes significant effort and time to expertise in terms of conquering the market. The different cultural features can create a similitude illusion that is mandatory for marketers to dig deep for ensuring a proper understanding of the environment and people in which they operate. According to Cojocaru (2018), the change in culture is paradoxically based on its phenomenon. Harmonisation between the domestic market and the firm's culture is essential to match the corporate culture of a firm with foreign partners.
The utilisation of a company's culture also includes extensive use of culture through solving the cultural dilemma that is mandatory. Establishing a marketing strategy based on culture has been adopted by several big companies in terms of product standardisation. Since consumer goods require more adaptations, so it is influenced by the economic conditions and cultural differences of the targeted market. Several firms across the world have made adjustments based on the specific foreign market requirements. According to Kang et al. (2016), national consumer preferences are generally driven by cultural interactions between consuming and producing countries. Therefore, firms are emphasising on increasing their cultural intelligence in terms of understanding the preferences of local consumers. Over the years, various researches in international marketing have examined the influences of both economic and cultural factors by determining the primary factors. Given the diversity, in terms of viewing global products strategy, it is essential to understand the cultural characteristics of a specific country. Overall, cultural factors have complicated impacts because of the associated elements that play a crucial role in determining the marketing strategy. The literature of international marketing suggests that a combination of cultural and economic characteristics is the major factor that influences global marketing strategy as both dimensions capture the essential aspects of the market side.
Figure 3: A cultural framework
Source: (MSR Blog, 2020)
The real impact of globalisation on the marketing strategies of major MNCs
It is significant to critically evaluate the impacts of globalisation on the marketing strategies of MNCs. The significant effects of globalisation on the operations of business require extensive as well as pervasive review. For instance, globalised business implies that for the business planning at all stages, knowledge is required at global as well as local level. As per Yang (2018), the detailed demonstration of globalisation comprises political, sociological and economic notions. The partial changes that occurred due to globalisation generated a major impact on international operations of business, thus effective strategies must be adopted so that MNCs can survive and excel in the global place of market. According to Patel (2017), the strategy is referred to as the adequate management plan for enlarging the positions of organisations, acquiring targeted performance and influencing customers. Several types of research have been conducted on the implications of globalisation on the MNCs, and only a few emphasise on the manner in which the globalisation produce effects on the international strategy of business.
In the present business environment, the main purpose of the strategic objectives of businesses competing on a global basis is to acquire the economies of scale. Hence, the multinational corporations that treat individual country markets must be substituted by global corporations that are mainly engaged in selling standardised products. As per Bradley (2021), strategic flexibility must also be emphasised in accordance with global strategy, which implies it must be able to establish reliable choices to transform the uncertainties of a maximising economy of the volatile world to the significant benefits of business.
It has been reviewed that the strategic objective is to exploit multiple sourcing, productions transforming to profit. In the case of global companies, also referred to as multinational corporations, the major advantages of enlarging into developing markets comprises the minimum cost of labour, unsaturated demand for improved products. Due to subsequent advancements in technology, performing business operations on an international basis has become quite flexible as compared to the past. MNCs are putting efforts to acquire benefits from globalism by selling commodities in several countries, sourcing production in those specified sectors that can manufacture commodities in a beneficial manner. However, organisations prefer to operate on an international basis since they can acquire adequate levels of revenue or on the other hand, they will able to acquire minimum cost structure within their operations.
Figure 4- Impact of globalisation on marketing strategies of major MNCs
It has been observed that MNCs generally look for such opportunities in case of economies of scale by producing goods in those markets that have substantially minimum costs in case of labour. MNCs may also acquire opportunities from economies of scale through expanding horizontally into new geographic markets. If such strategies are proved effective, it will result in adequate developments in business, higher margins and increased revenue. Generally, there is increased opportunity for business growth in such markets where economic growth is also involved. MNCs can also acquire adequate profits and developments if they enter into these particular markets. As per Petricevic and Teece (2019) when MNCs perform business operations in new global markets, several challenges may have to be encountered.
The significant business challenge experienced by MNCs is the ethical practices of business. For almost all MNCs, maintaining the improved standards of ethics while conducting its operations in any nation is a significant point to be taken into account. Another significant challenge is the effective capacity to adequately incorporate new regions within the corporate structure. Huge capital investments and the establishment of specified units of strategic business are essential in case of international expansion so that accounts and operations are adequately managed. Establishing a public image is also considered as a crucial component for several businesses. Establishing the potential of public image in a new geographic region is regarded as a major challenge.
As per Witt (2019), it is quite difficult to determine efficient organisational leadership with the prescribed skills and knowledge in order to approach a specified geographic market in an efficient manner. In order to establish an effective global strategy, talented managers with improved intercultural competence are regarded as a crucial measure (Advertising, 2021). International business is referred to as the broad range of business activities carried out across national borders. In accordance with maximising globalisation, international business has been able to acquire the attention of government officials and several business executives.
Figure 5- Dimensions of economic globalisation
According to Petty (2017), the increased focus must be laid towards being responsive towards local conditions of the market. Strategic objectives must be reviewed as the effective global application of marketing perspectives rather than standardisation. It also encourages the establishment of an organised structure for transfer of necessary information. Global operations must possess the capacity to maximise efficiency in aspects of development and efficiency in local market delivery.
For the implications of globalisation on business strategies of MNCs, the following are the strategies that can be adopted-
Strategy based on localised product- The Company may make decisions on evolving products for only one particular country. This is often considered ineffective, but it provides opportunities for adaptations in the market.
Strategy based on Modified product- The Company may make decisions to establish a common platform based on a product that is applied across the globe. The benefits of cost and application of R&D investment all over the world may provide adequate competitive benefits in contrast to the competition.
Strategy based on Standardised products- The Company, may also adopt a strategy to establish an overall standardised product across the globe. This particular strategy offers advantages in manufacturing as well as development. Basically, there are two approaches to establishing a standardised product. The initial approach is to establish a product that reflects the highest denominator that implies to involve as many requirements as probable in the case of similar products. The other approach is to establish a product with a specified list of features that coordinate with the requirements and costs of the market. The standardisation of marketing strategies of major international corporations performs a significant role in the present business environment due to the collaboration of the world economies, the developments of globalisation and the increasing world trade.
As per Benmamoun et al., (2020), globalisation is referred to as the consistent process by which societies, cultures and regional economies have become integrated due to maximised network of trade and communication. A multinational company is an organisation that conducts its operations in more than two countries. The increased significance of international trade and the emergence of several MNCs have resulted in intensifications in globalisation. It has been observed that multinational corporations possess several subsidiaries, some acquire benefits from globalisation, whereas others do not. The impacts of globalisation on multinational corporations can be either good or bad, according to the nature of the corporation. Through globalisation, businesses have been able to access to markets that would be quite difficult during the past. Due to the development of the internet, customers can order products from companies anywhere in the world. Usually, this is regarded as a major advantage for businesses that aim to maximise their customer base. Through globalisation, international businesses are also able to establish partnerships with organisations all over the world.
Multinational marketing is generally referred to as the process of selling and advertising products to consumers all over the world. It is also referred to as global marketing as it provides opportunities to companies to enlarge its operations in a new market through international distribution, competitive pricing and internet. The following are the marketing strategies of MNCs in which globalisation generated a real impact.
Standardisation versus Localisation- One of the significant marketing strategies in case of multinational corporations is coordinating the requirements for standardisation of business processes with a localised approach. This particular strategy is difficult for businesses while attracting new customers in local markets. If the same strategy is implemented in every market place, in such situations, it does not take into consideration the requirements of local consumers.
Framing Strategic Alliances- Forming strategic alliances in case of marketing strategies of MNCs provides opportunities to companies to market internationally.
Electronic Channels of Distribution- With the widespread application of social media, the Internet, electronic channels of distribution has been effectively implemented in the marketing strategies of Multinational Corporations. Companies can utilise the Web to sell their products to consumers all over the world without involving local distributors and without incurring costs in establishing new premises (Bizfluent, 2021). Although there are shipping expenses and tax implications, channels of electronic distributions served as a reliable measure to enlarge its operations in new markets. It is essential for multinational corporations to take into consideration the significant factors of localisation and competitive pricing when planning to sell internationally.
Challenges, as well as opportunities, must be taken into account in case of marketing strategies of major MNCs. Determining efficient distribution and advertising methods, maintaining connections with local suppliers and dealing with distinctions in culture are the significant constituents of efficient globalisation.
MNCs conduct a major proportion of its operations in several other countries. Hence, they can have a major influence on the entire economic environment. Current advancements in information technology, in addition to market liberalisation and deregulation, have generated a major influence in the development of MNCs. As per Klimek (2016), multinationals conducts its operations in distinct structural models. With market liberalisation and globalisation, the outward FDI flowing from developing countries have not been constrained to other developing countries. As per the researches and estimates, MNCs have turned away from acquiring general utilitarian requirements that implies requirements for market and natural resources. At the globalisation stage, MNCs are no longer emphasising on basic resources, rather they have emphasised on adequate endeavours mainly developed improved strategic assets, acquiring improved effectiveness and economies of scale and search for improved markets. However, developments of advanced technology and globalisation generate a major impact on the marketing strategies of major multinational corporations. The World Wide Web and the Internet are considered as the significant constituents in the present technology-based businesses. A social network is reviewed as a reliable marketing channel that is required to be integrated with conventional channels of marketing. A social network is not a substitution of conventional marketing tools but rather another effective tool that is able to acquire customers that mainly prefers electronic media.
Electronic word of mouth is also considered as the effective strategies that social media produced impacts on marketing strategies of major MNCs. In order to acquire success, MNCs must apply significant approaches. It is essential for MNCs to standardise the elements of marketing mix and marketing strategies and must apply adaptive strategies of marketing to overcome the requirements of the clear market. As per the researches, Globalization has maximised the rates of acquisition and mergers. The competition among multinational corporations all over the world has maximised in a significant manner. Adaptation of the marketing mix is also essential while selling its products to other countries. At present, the aspect of globalisation has been viewed as one of the significant concepts that influence the operations of companies and organisations all over the world. Multinational corporations are consistently improving their marketing strategies to fulfil the requirements of customers.
As per Butarbutar and Lisdayanti (2020), in association with the reliable methods and strategies applied by businesses to involve in international marketing, the global strategies also aim to acquire the same strategies as in the case of international marketing. The key reason behind the businesses to globalise is the willingness to enlarge their operations in targeted markets. The expansion of targeted markets in case of international firm implies that the firm possesses adequate resources for maintaining its operations. Widening of businesses also indicates that the particular company has obtained adequate knowledge while maintaining the operations of the company.
As per KURSAD OZEKIN (2019), one of the major impacts of globalisation is the developments of international alliances that associates firms of similar industries based in distinct countries. In addition to international alliances, prescribed international policies have been established that assisted in maintaining harmonious connections among businesses. Reliable modifications and restructuring in the organisations are also essential since in addition to company's objectives to enlarge its targeted market, additional workforce and reliable processes of management is required by the company to adjust increase in changes. Development of government relations is also considered as a major impact of globalisation. International businesses must be able to make agreements and negotiations with the government to comply with the prescribed requirements and develop harmonious connections.
Chapter 3: Methodological Discussion
The research methodology is a crucial chapter for the research project as it helps the researchers to conduct a systematic study. The general research is different from the research project that includes research methodology because it helps the study to work on the research aim in a systematic way rather than making the people believe on random facts (Chetty, 2016). The research onion is a great way to understand the interrelationship between, research philosophy, approach, method, data collection method and analysis (Snyder, 2019). The figure below shows the interrelationship between the factors of research methodology with the help of the research onion.
Figure 6: Research Onion
Source: (Chetty, 2016)
Research philosophy is basically the belief through which the data of the research is gathered, analysed and used. There are mainly four types of research philosophy, which are applicable for the research based on the outcomes it is expected to provide and the way to collect the data (Žukauskas, Vveinhardt and Andriukaitien?, 2018). The present research is based on interpretivism philosophy because the study aims to provide new information about the research topic, which will add value to existing literature. It is only possible by conducting qualitative research. The interpretivism philosophy is mainly based on the theme to understand human nature and their role in society (Khatri, 2020). This philosophy is appropriate for the present research because the research will interpret the psychological strategies of the individuals who are at managerial positions of major MNCs. Understanding human nature and their psychological strategies is a key work of the researcher who conducts the study based on this philosophy (Ngozwana, 2018). While following the interpretivism philosophy, methods such as observation, existing text analysis and interview are considered for data collection. Overall the findings will be qualitative in nature, which will be able to address the research questions.
There are two main research approaches that are inductive and deductive. The present research is based on the inductive research approach, which does not allow the study to provide research findings based on the existing theory (Gabriel, 2013). However, the inductive approach does not completely disregard the theories as the research questions are based on the existing idea about the research topic, which is quietly influenced by existing literature (Machila et al., 2018). The findings that are gathered using this approach is able to develop new theory because inductive approach helps the research study to conduct the study such a way that it develops new findings for the same research topic (Farahani, 2018). An inductive approach aims to generate new ideas, which can be added in the existing theoretical background of the research area (Gabriel, 2013). This approach is appropriate for the present research as it aims to evaluate new findings of the research area, which will add value to the existing literature.
The research methods are basically three type's qualitative, quantitative and mixed-method. The method is selected based on the expected findings that the study aims to deliver. In the present research, the aim reflects that the study will find out the information about how globalisation impacts the marketing strategies of the firms (Rutberg and Bouikidis, 2018). However, there is enormous information available about the research topic in the existing literature. The study aims to find out new aspects of the research topic to add valuable information in the existing literature, so the qualitative method is the best way to do that. Qualitative research aims to collect and analyse non-numerical data, which helps the study to provide qualitative information about the research topic (Bazeley, 2018). Qualitative method will help the study to gather in-depth information during data collection, and the information will able to match the criteria of the research questions. Addressing the research questions is one of the major tasks of a research study which can be possible by selecting adequate research method (Aspers and Corte, 2019). Qualitative method is the most appropriate method for the research because it can lead the study to provide qualitative findings, which will add extra value to the research.
Data collection method
The data collection method is a crucial thing of research methodology as well as the research because the success of the research heavily relies on this. There are many data collection methods that can be used in a qualitative study, and they are observation, focus group, secondary research and interview (McGrath, Palmgren and Liljedahl, 2019). The appropriate data collection method is selected by a researcher based on the expected findings it can provide to the research study. Some research studies include two data collection method for extensive data (Fritz and Vandermause, 2018). However, balancing between the two data collection method and providing ultimate findings of the research based on two data collection methods is quite challenging. On the other hand, there are some studies that consider only one data collection method for limited but manageable data. It takes less time and a hassle-free way to extract the findings (Ørngreen and Levinsen, 2017). In the present study, the interview method is selected for data collection as it can provide more relevant information related to research questions.
Through the interview method, the data is collected from 5 MNCs, which are operating globally. The information collected via the interview is with the help of an interview questionnaire that is attached in the appendix. The interview questionnaire is developed based on the aim of the research and research questions. A total of 20 managers are selected from the 5 MNCs to conduct the interview. The managers are interviewed via an online platform, which is an easier way to collect information within less time. At first, the manager is contacted via social platform LinkedIn, and a consent form was sent to them, which includes the aim of the research and other basic information about the research. As soon as they agreed to take part in the interview, the questionnaire was sent to them. The interview questionnaire includes ten relevant questions apart from general information (Basias and Pollalis, 2018). The interview questionnaire helps to gather crucial information related to the research.
Data analysis tool
The data analysis tool that is going to be used in the study is thematic content analysis. Thematic content analysis is very useful to extract the outcomes of the raw data while using the inductive approach (Roberts, Dowell and Nie, 2019). Rather than putting the data in the pre-defined framework, thematic analysis enables the study to present the data in specific themes that are made based on the interview data (Canary, 2019). While using thematic analysis, the common themes are used to identify the key findings from the interview data. Thematic analysis is selected for the present research because it is an appropriate tool to analyse qualitative data, especially while using the inductive approach (Joram, Gabriele and Walton, 2020). The thematic analysis, the research will able to extract expected outcomes from the raw data that will enhance the quality of the study. Furthermore, the thematic analysis will ease the way to compress the vast data into limited findings which can be aligned with the research objectives (Weiler, Matt and Hess, 2019).
Chapter 4: Empirical data and research findings
After getting all the data gathered, it is observed that most of the managers answered about the key impact on marketing strategies in terms of pricing, promotion and marketing communication. While entering a new market, the most challenging thing an organisation face is to get information about the target market profile. The idea of the target market is somehow clear to the organisation, but the choice and preferences of the people of the new geographic area or a country are different from the preferences of home country target customers. Hence, there are certain changes that need to be made in the existing product portfolio. The strategies that are applied in the home country or other country where the entity has already expanded its business differs from the strategies that are developed for new market entry. The marketing strategies are developed and implemented to make the target customers assured that the product availed to them matches their expectancy. Hence, it is important to show this through effective marketing communication and strategies. In the same nation, marketing strategies may have to be implemented differently due to distinctive geographical needs. For example, the product that is preferred in a geographical area may not be useful for another area due to an external environmental concern or the lifestyle change of the target customers.
The market segmentation is a crucial part of marketing strategies as it helps to develop the product and pricing strategies according to the needs of the target customers. The demographic, psychographic, behavioural and cultural perspectives of people are heavily influenced by the norms and rules of the country. Hence, before planning to expand in a new country, it is important to know about all the factors related to the country. The importance of assessing the external environment lies beneath its benefit that it provides to develop adequate strategies. There is a certain analysis framework that MNCs use to assess the external environment of the business while entering a new market. The most common frameworks are PESTLE, PORTER’s five forces model, BCG matrix and Ansoff matrix. There are other ways through which the MNCs learn about the external environment of the busyness. Based on the external environmental analysis, the decisions are made. Some of the managers expressed that apart from the preferences of customers and PESTLE factors, the values, language and other consideration are also included as a part of the analysis. A wrong message can harm the sentiments of the people and can directly affect the brand image of the entity.
There are certain findings are extracted from the empirical data. One of the major findings is the use of external environment analysis before developing marketing strategies. The external environment analysis plays a crucial role along with the internal analysis. An entity should know about the consumer taste and preferences very well while entering in the new market (Bradley, 2013). The external environment analysis is important for a business to develop marketing strategies because it helps the entities to develop exact strategies, which can meet the expectancy of the business (Bradley, 2013). Another finding that is revealed via the empirical data is the use of market segmentation. The market segmentation includes key characteristics of the target customer profile, which helps to develop the marketing strategies. There are other expected findings that the study can provide in the analysis part. In the present part, the findings are provided based on the apparent view of the data. The crucial finding of the study is discussed in the next part of the research that is analysis.
Chapter 5: Analysis
The analysis part includes the results of the collected data and the actual meaning of the results that are presented in findings. The MNCs that are selected for collecting the interview data are- Nestle, McDonald’s, Unilever, Woolworths and Tesco. A total of 20 managers are selected for the interview by considering four managers from each MNC. A short description of the companies is given below:
Nestle: Nestle Ltd. is a major player in the FMCG segment, and it has the business expansion over major markets, like Latin America, Europe, India, and North America. It has more than 400 manufacturing units in 60 countries (capitalmarket.com, 2021). The business is originated in Switzerland.
McDonald’s: It is an American based fast-food chain, which gained huge popularity for its food menus. The chain expanded in both domestic as well as international market. Currently, it has an operation in more than 117 countries and operating 32000 outlets around the world (britannica.com, 2018).
Unilever: Unilever Ltd. is known as one of the biggest players in FMCG and for its major product line. There are severe brands that are availed by Unilever in all of its operating countries (unilever.com, 2018). The company is originated in Europe and started expanding its business to the US, Asia, North America, Africa, South America and Western Europe.
Woolworths: Woolworths is known as the largest supermarket chain that originated in Australia, and it has 995 stores across Australia. Along with the business in Australia, it has expanded its business in New Zealand (woolworthsgroup.com.au, 2019). There are other countries, in which the major supermarket chain entered to expand its business.
Tesco: Tesco is another successful supermarket chain that is originated in the UK. Tesco runs its business in many countries such as Ireland, Turkey, India, and operates its business in other Asian countries and Europe countries (Tesco, 2019). Tesco is known as one of the major retailers in the world.
Analysis of the data collected
Based on the interview questions and data collected through the interview, there are a total of 5 themes selected to illustrates the exact results of the data. The following points are shown as the key themes and the information that is related to the themes.
Analysis of the external environment
The managers of selected MNCs present their view about the common frameworks the entities use to gather information about the external environment of the geographical area of the host country, where it is planning to expand the business. The most common external environment analysis-framework used by the MNCs is PESTLE because it provides all-rounder information about the country, related to the country’s political, legal factors, social and economic condition, which represents the consumption pattern of people and their lifestyle and income level. Based on this information, marketing strategies such as pricing, product strategies are developed. Other analysis frameworks applied are Ansoff matric, porters five forces model and BCG matrix. However, the use of this framework depends on the type of information that is required by the entity. The manager of Nestle replied that porter’s five forces model is followed when the entity plans to open a new manufacturing unit or to expand the distribution channel in the new market.
One of the managers of Tesco replied that the BCG matrix is most fruitful analysis framework for them, which not only helps to develop the marketing strategies but also help them to work on growth strategies.
Challenges faced during international expansion
There are severe challenges faced by the MNCs while entering into a new market and one of the common challenges is the acceptability of the product or service that is going to introduce by the entity. The marketing manager of Unilever group replies that passing through the legal procedure of product verification is a crucial thing to believe in the acceptability of the product. If any product does not match the industry norms or regulations of the country, then there are difficulties to launch the product in the market. So long with matching the expectancy of the consumers, the product should fulfil the expected norms by the industry and government regulations. In such a case, an MNC has to follow many rules as it operates in many countries. While operating in the host country, following the government regulations and industry-specific guidelines is a must.
Due to the change in the industry norms and government regulations, we conduct a market survey to gather all the information about the marker, replied by the marketing manager of McDonald's. The sales manager of Tesco replied that it is quite challenging to match the expectancy of the target customers while introducing an entire product line to the new market. Some products may be liked by the customers, whereas some to them did not match the expectancy. While the customers arrived at stores ask for any product that is not currently availed by our store, we note it down for future reference. Thus, small, queries of the customers help us to know about the exact needs and preferences of them.
Effect on existing policies
The marketing manager of Woolworths presents his view about the change in the existing marketing strategies and policies of the business due to entering the international market. The advertisement and marketing norms followed by the entity in the home country differs from the norms of the host country, which brings slight to a major change in the strategies. The communication channel and the way the product is marketed to the customers differ from one country to other. The language consideration also needs to be followed, along with the cultural beliefs and values. The cultural beliefs and values of the host country are different from the home country, for which the marketing communication strategies also differ. Being a marketing manager, one should always take care about the content or the language using in a marketing communication to safeguard the reputation of the target market. Any unwanted language or phrase that can hurt the community sentiments can create major conflicts and lead to the negative image of the company.
Things that mainly change in marketing strategies
Most of the interviewees respond to this as the most changing factor in marketing strategies is pricing. The most basic reason behind this is the change in the currency from one country to another. However, this does not affect the profitability a lot because the cost of the product stays almost the same; only the converted currency looks different. The main thing is affected in pricing is the tactics to attract the customers and make them realise about the affordability of the product. As there is already existing competitors in the market, the pricing strategies change from time to time. Another thing affected due to internal expansion strategy is the promotional strategy. This also replied by most respondents that the promotion of the products is another most effective area that is influenced due to internal expansion strategy. However, there is a common thing that is followed by most of the countries is the major internet users, which gives huge reliability to the MNCs to develop their marketing communication channel. While creating the content for TV or print advertisement, the language and concept use to influence the target customers should be adequate and the content should not involve any harsh statement or anti-national concept that can hurt the sentiments of people. In creating such content, the entity along with the advertisement agency, should keep special focus.
The areas that can be improved
There are certain areas that need further development to strengthen marketing strategies while entering a new market. Working with local partners is a great way to enhance marketing strategies. The managers of Woolworths and Tesco provide their view that their entity is already working on it. They find potential partners with whom they can enter into business contracts. They basically select local partners that are based on the host countries through which they can get an idea about the market very easily. Adjusting the media mix is another way through which an MNC can ensure better feasibility of the marketing strategies. The marketing communication channel popular in a country may be different from another country, so while selecting the marketing mix, it should be based on adequate market research.
Findings of the research
Based on the data collected through the interview and the analysis of the reviewed literature, the study came up with the potential findings, which are discussed below:
Pricing and marketing communication are key challenges: After analysing the data, it found that the key things that hugely influences due to globalisation of business are pricing tactics and marketing communication. The pricing tactics applied in the home country differs from the tactics applied in the host countries (Butarbutar and Lisdayanti, 2020). The marketing communication and channel heavily rely on the dependency of media, on which people relied to get information. However, the social media platform is quite similar media that can be applicable for all of the markets. The content and concept of the advertisement should be clear to the people, and this finding addresses the first research question, in which the study aimed to find out the key challenges faced by global firms while developing marketing strategies (Klimek, 2016). The analysis of the data also reveals that the pretences and lifestyle of people changes from country to country, so market segmentation is another thing that controls the acceptability of the marketing strategies.
The areas globalisation impacts the marketing strategies: The key areas that are affected by globalisation are already discussed in the previous section. The thing that adds new information is the effect on the policies and certain strategies to align with the value, norms and cultural beliefs of the host country (Benmamoun et al., 2020). The norm and culture of a country heavily influence the perspectives and preferences of the customers, so anything they find against their culture or belief in any of the products can lead them to avoid the consumption of the product or totally ban from the government's side. While entering a new international market, an entity should well aware of the rules, regulations, culture and values of the country. The language is another that requires similar consideration along with the previous things.
Importance of analysing the external environment of business
Another finding that is evaluated through the collected data is the importance of external environment analysis before developing the marketing strategies. The most common frameworks or models that are used to analyse the external environment of business are PESTLE framework, BCG matrix, Ansoff matrix and PORTER’s five forces model. However, the application of the model differs from an MNC to the other and based on the area of marketing strategy. These models and frameworks are proved as fruitful for the companies to develop strong marketing strategies according to the needs of the host countries (Witt, 2019). These models help a global firm to align with the internal environment of the business with the external factors that cannot be controlled by the entity. Hence, the external environment is a major contributory factor that takes part in influencing marketing strategies.
The most common ways to address the primary challenges of marketing strategies
There are certain ways the study reveals that helps to control the influencing factors of marketing strategies. Working with local partners is the most common way that applied by many MNCs to strengthen marketing strategies. Adjusting the media mix according to market feasibility is another option to enhance the competitiveness of the business.
Chapter 6: Conclusion
To conclude, it can be said that globalisation has brought individual and international businesses more closely; thus, the impact on global firms is immense as well as exceptional. International trade and globalisation are mostly interrelated with one another. International business has taken advantage of globalisation and taken part in its development. The concept of globalisation is creating anything accessible at places previously accepted challenging for business along with the practices of materials that are valuable, yet are not simply accessible. Goods and service industries have both significantly benefited from international dealings, and even a number of traders are able to take advantage of it. Hence, it can be said that this has also encouraged bringing in a flourish of entrepreneurship and promoted individual to introduce something of their own.
In addition, the process of globalisation was started and supported by changes in technologies that caused by the expansion of the market that is basically related within the system, financial stability and domestic politics. This process guides to innovative or changed administrative organisations as they shift toward real globalists, as they have to finance on prospects prepared and minimise costs levied by the process of globalisation. Thus, it can be said that the process of globalisation will cause many producers competing for an economic hold.
Throughout the research process, research ethics has been considered as this is one of the important factors for a certain reason. Hence, a number of comprehensive ethical areas that have been considered in this overall research and they are informed consent from participants, confidentiality, respect to privacy as well as the participants were not forced to give an interview. Thus, it can be said that ethical consideration has been completely focused while conducting the research. As the overall research is based on primary research method, an interview has been conducted with some of the multinational corporations and the information of the participants has been made confidential and has not compelled them to take part in the interview session if they do not want to get involvement. The participants’ privacy has been respected and will be kept as confidential in future research too.
Every research has limitation and can exist because of restrictions on methodology or research design, and these aspects might impact the research findings. Hence, a number of research limitations have been identified in this research paper, and that includes:
- Lack of earlier research studies on the subject- Literature review is a significant section of any research, as it helps to recognise the work scope that has been done so far in the research area. The findings through literature review are used as the foundation for the researcher to create upon to acquire qualitative studies. The current information of globalisation process was not obtained, which shows a sort of research limitations.
- Limited access to data- As the interview were done with a number of multinational companies, a limited amount of data were only obtained as there was limited access to the information due to confidentiality.
- Time constraints- There was a sort of deadlines issues as the research was vast and the time available to study a research problem and to calculate a change over time is controlled by the deadline of the assignment.
Future Research Scope
Many different revision and studies have been left for the future due to lack of time as future research involves an intense analysis of specific mechanisms, new proposals to try diverse methods, or simply rarity. Within the process of globalisation in the international platform, there are many other methods to conduct research in future.
After analysing the overall research study, it can be said that global firms are facing challenges in international markets. Hence, a number of recommendations have been made based on the issues faced by global firms within international marketing, and they are as follows:
- Adapt to the communal environment and plan for a go-to-market strategy- The issues of language and cultural barriers must be solved before expanding the business internationally. Therefore, to overcome the language barrier, it is important to adapt to the cultural environment and plan a go-to-market strategy to avoid further inconveniences.
- Discover the right partner and build associations with domestic business- If a business is about to expand within new territories, they need to unavoidably come into conflict with certain new businesses. Thus, it will be helpful if the firm could make a working affiliation with overseas companies. For example, import, logistics and storage firms and use them to help their business to improve and expand. However, with local proficiency and knowledge, these firms can bring a number of benefits (EBS, 2021). By closely functioning with them, they can provide the goods to their consumers, or help them serve the firm to get clients, making the change into marketing in the target nation that much easier. Thus, to compete with international firms, it is important to find a trustworthy partner and build an association with domestic business.
- Due diligence must be done and solve the tax, legal, and finance- In the international market, the global firms mostly face issues like tax codes and compliance. Handling tax issues can be challenging in order to operate in a different country rather than a host country. Dealing with fees, tariffs and taxes for international dealing can be the main barriers for a number of corporations-particularly SMEs (Tradegecko.com, 2021). Thus, it is important for them to follow due diligence to solve the tax, legal and finance issues in future.
Should understand the procedure of Cross-border- The procedure of cross-border is important for any business to succeed, thus executing regional structures within the markets is just one method that will enable for sharing the knowledge of cross-culture to flourish. In the access to international markets, it plays a significant role to promote or restrict trade (Cassidy, 2021). Hence it will help to access more potential financiers that generally means this will access to more capital.
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Appendix: Interview Questionnaire
Years of experience:
- What are the key things your entity considers while planning to enter a new market?
- What are the main challenges faced while presenting a new product in the new market?
- What are the main focus areas that your entity prioritises more while introducing a new product in the new market or existing product in the new market?
- What is the analytical framework used to assess the external environment of the business while entering a new market?
- How the business expansion strategies in global market influence the existing policies of the business?
- What is the effect of market entry strategy in the marketing communication of the business?
- What are key aspects that need to be changed in existing marketing of the product while entering into a new market?
- What do you think about the impact of globalisation strategy on the marketing of your entity?
- What are the things that need change as per your experience that can bring better feasibility of marketing plan in host countries?
- What do you think about the ways to strengthen the marketing strategies of your entity while introducing the products in a new market?