Literature Review #8 The Organizational Context
In times of globalization, most people think about a term that represents a fact of becoming more and more equal to other nations, countries, individuals and cultures. Caused by the opportunity of being able to purchase or experience what others could at a different location, recognized in any form of media or conversations with more “global” people, travelers.
But what is the reason behind the fact of being able to purchase the same beer, food, jewelry or experience the same festivals, movies and music that occasionally come from somewhere else in this world and might be part of another culture?
Behind all this, are the strategy leaders and mangers of all businesses in the world, which face an opportunity to create value with their resources, team and expertise in a foreign market. These markets, companies are targeting on might be underserved or even if they are served with a certain product or service, still some companies see their chance to gain market share by adding value to their “imported” and “not-local” product. This is caused by demand; demand people like you and me create, following trends and comparing themselves to a more global behavior. Media allows us to follow trends and therefore gives companies that have enough resources, experience and power the opportunity to go global.
But going global does not mean that a product or service is already bought or used. Companies going global face huge challenges by doing so, as they are entering foreign markets with differences in many characters as customer need, buying behavior, substitutes, legal issues, distribution, media, infrastructure, ethical perspectives and cultural aspects. Adapting to those different circumstances might increase the chance of gaining more market share and increases the value creation for locals as the product or service is better tailored to the market demand. But by adjusting companies risk to loose core values, strategies, execution and culture that was already successful in their domestic country and might be set as a substantial comparative advantage. So it is international managers task to come up and supervise the individual and right strategy for going global, not loosing core competences while adapting to local issues. This is why different internationalization models