There are both benefits as well as drawbacks of global strat

There are both benefits as well as drawbacks of global strategy. Discuss both and provide specific examples.

Solution

Certain kinds of businesses are more appropriate than others for global market expansion. But any type of business may benefit as long as it needs few changes in its marketing strategy to reach consumer markets anywhere in the world. Even smaller organizations that have a Web site can connect with potential customers in other nations. Taking a business worldwide lets one find new markets for the company\'s commodities, reach new consumers overseas, and go into markets with less competition.

Pros

The chief advantage of globalization is that it lets one reach many more customers. As long as there is demand in an overseas market for a commodity your business offers, there exists a customer base. A product that sells successfully domestically would often do well in international markets,.Electronics and similar tech products are examples of consumer goods that sell well in the global market.

Taking Advantage of Opportunities

Businesses may take advantage of global market opportunities in many ways. One way, is to franchise your business. Franchising is a fast, cost-effective method to expand a business into new markets. Another option is to partner with businesses based in other nations.

Cons

Since consumers in other nations often have varied preferences and needs and might not have much interest in buying the product in question. Another risk of going global is that it could prove be costly. This is more true if you decide to set up operations overseas. Lastly, different nations have different regulatory standards. Products that can be made and sold freely in certain markets may run up against stringent regulatory hurdles in other nations