“Why does Business go Global?”
Department of Management Sciences
FAST-National University of Computer and Emerging Sciences, Peshawar
Why does Business go Global?
Going global for a business has 3 very different meanings. One meaning is to begin selling products and services to other parts of the world. A second meaning is to begin outsourcing labor to another part of the world. And, the third meaning is to begin buying materials from another part of the world.
In our previous class of Global Corporate Strategy we ...view middle of the document...
• Global Green Posture: Whenever globally the market is full of opportunities or when the company sees a market where there is high demand and low competition or it’s a kind of perfect competition and every business is getting their share so a company might decide to join that market too or in simple words we can say that when the market is attractive.
• Government Incentive:
• Over Capacity: Company goes global when there is over capacity in the production and the goods are produced more than the market demand or making use of the things or resources which are free or not used most of the time.
• Economy of Scale: When a company gains experience in producing a product for a longer time then achieve the economies of scale production where the fixed costs decreased and then per product cost also decreases which give the company an advantage to gain more market share.
• Counter Attack: Sometimes business goes global because of the attack from the competitor in their domestic market. Or to attack the companies home market by counter attack Counterattack is a type of defensive strategy. A counterattack exploits the competitor's weaknesses where it may involve an attack on a defended terrain. This type of defense allows the attacker to move in and the defender capitalizes on the attackers mistakes, here we can take the example of Kodak moves into...