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Difference Between Globalization And Internationalization

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Before we begin with how globalization affects marketing and vice versa we should start by comparing globalization and internationalization. Globalization is known to have same marketing strategy throughout the entire world; however with internationalization marketing strategies vary depending on the country’s culture and other factors. When a company wants to global it should have common products, price and promotion within its marketing mix; the only difference is the place. The common ground that is settled on within globalization identifies the difference between globalization and internationalization. Because of the importance advantage and efficiency of undergoing both processes, many times companies believe they should take into consideration …show more content…

The cost of manufacturing may vary due to different taxes and countries’ financial conditions. On the other side, marketing costs are increasing. With that the company is to deal with a high lump-sum cost. As explained previously, in case of internationalization cost is not the same. In some countries the product cannot be marketed in the same way as in other countries, since countries may have different values and hence perceive products differently. However, in globalization there exists uniformity in selling the product, and marketing is the same in all countries, and in this situation the company will standardize the product’s packaging leading to the benefits of economies of scale. These, as Young and Stalk (2004) believe occur when companies in moving production redesign the process, and not the product and its design. Hence, standardizing packaging and communication with suppliers reduces cost only and not the whole new line of product …show more content…

Well it’s you. Matt Powell stated that Nike spends $8 million a day, which is around $100 a second. When on the other side it brings in $21 million from sales, knowing that the process of manufacturing a shoe is $4 however it is sold for $200, and with that we deduce that they are using their money wisely. Knowing that Nike is not the only example, well every company consists a certain percentage of its profits for their marketing , in terms of advertising, research and commercials. Marketing research is what globalization relies on; it provides an overall research of all factors that might be faced throughout the process of globalization. Hence a marketing research should be done carefully with all reliable sources to build it up. If a marketing research shows negative results then globalization shouldn’t be considered. And to be able to attain a reliable results manager and all segments including finance, accounting, and marketing should work on researching about the country and have internationalization as a start for the project of

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Globalization is the inclusion of the differents values socio-cultural and economic local from one country to another, through their relationships exchanged a series of products and knowledge that extend and increase their ideological and economic situation. Globalization is beneficial for businesses of Colombians. As well as has influenced in areas as the social, economic, cultural, political, technological and educational in our country, globalization has ventured into the business of Colombians to favor or disfavor wholesale sales. Globalization has been a transition process started from the time of conquest and colonization, this exchange of cultural contracted a new market with mobility and trade of products and goods which over time did not stop there, but rather it was intensified and point greater flowed recognition from the

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The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.

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Consider both DJC’s performance in Kawasaki and its potential in the United States. The cost differences between plants of ACC at Sunnyvale and DJC at Kawasaki has been compared by calculating their manufacturing cost. In 1991, the two plants are located in different countries (US & Japan) and therefore, to compare the costs between the two, the cost indices values that have been provided in the case have been used. The main cost differences between the two companies: DJC and ACC with respect to their plant operations for the years 1986 & 1991 have been shown in Table 1.

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Nike’s first globalization strategy was outsourcing. Nike Inc. realized that manufacturing its products (footwear) in the U.S was expensive and to further export these products to distributors outside the U.S would be a massive challenge. This is because price affordability was a major concern for customers outside the U.S who would not comprehend why sportswear should be that expensive to buy. However, Nike Inc. took advantage of globalization by using the Japanese high-quality, low-priced production strategy by outsourcing all its shoe production to Japanese producers (Locke,

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Debating globalism and nationalism is currently creating a divide between people, locally, nationally, and internationally. After World War II, the world experienced a surge of globalism: the global economy increased in value, environmental and economical issues became interdependent among many nations, and more immigration occurred between countries. This major increase of conflicts in globalist policies continued until the recent years of the 21st century. President of the United States of America, Donald Trump, has implemented harsher immigration policies, especially on the Middle East. Great Britain left the European Union.

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Price Strengths 1. Low Cost Manufacturing Nike has a company who use the low cost manufacturing for production footwear. All of the Nike’s footwear virtually is manufactured outside of the United States by independent contract manufacturers such as Vietnam, China and Indonesia. Nike was operate multiple factories around the worlds. In 2014, Vietnam, China, and Indonesia manufactured roughly about 43%, 28%, and 25% of total Nike branded footwear and it has also operations in other country such as Argentina, Brazil, India, and Mexico.

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International marketing strategy is a combination of marketing principle that could be used to formulate a marketing strategy for specific products and services within one or more countries to extend or internationalise the company. The research paper is based on the international marketing strategy of Nike Inc. (a Sports Apparel retail company working internationally) to help the management of the company shortlist and identify potential market for them to expand their business. It utilised macro and micro analysis of the sports retail market to identify the potentials of the industry that would help them to increase their business performance in the international marketplace. Macro Factors PESTLE It is noted that PESTLE is one of the most important and effective that often used by organisations in order to assess different macro factors that influence their activities in a negative manner (Li, et al., 2014).

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Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.

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Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing

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It is true that the United States is the world largest economy based on GDP. It is famous for numerous huge brands in the World. For instance, in the field of technology and social networking, American Brands such as Apple, Microsoft, Google, Facebook, etc. always take the lead in this market. In terms of food, we can not deny the succeed of McDonald or Duckin’ Donuts. And in the coffee markets, there is a firm which changed the way Americans and people around the world view and consume coffee - Starbucks.

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This is due to Nike gets its merchandise generally from foreign manufacturers. To operate profitably, Nike need to get good value on products and supplies and, in turn, offer good value to its customers with accessible solutions. Publics: Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups

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