Globalization is a good move for the organization in multiple ways. Globalization is the critical driver for global expansion, and it is what the company has strived to do recently. The organization is in a better position to maintain a diverse customer base and set the foundation for excessive market share instead of just relying on limited regions. Revenue growth has been one of the crucial motives behind globalization (Kunc, 2018). Of course, the probability of the larger customer groups (segments) is high, and it can enhance the revenue streams and financial strength. Globalization has also become a crucial driver for competitive advantage (Kunc, 2018).
For instance, the firm can streamline its customized and unique furniture items to customers, and acceptance at a wider level can enhance competence. Globalization is a good move for the organization because it can improve business or operational scalability. The organization can have exposure to diverse markets, which will further set the ground for adaptability and innovation in several ways. Learning how to improve product design and quality is essential to be relevant and competitive in the market, indicating the significance of this move. Eventually, enhancing the brand image is the best consideration, and globalization is one of its primary drivers in this context. Streamlining the quality and custom design of furniture products globally can make the organization a well-reputed entity (George, 2018).
Rationale Behind this Decision
Globalization has been rationalized in several ways. For instance, concerning the strategic considerations, the organization has strived for market growth. The opportunity to evolve and thrive in the potential markets is in the limelight. Globalization can help the organization meet this objective or strategic intent. Global existence can ensure effective competitive positioning. The organization can position itself as a well-regarded, competitive, and innovative player in the market. There has been a cultural consideration. Integrating with diverse cultural viewpoints is one of the primary strategic intents. It is all about fulfilling the needs of the customers at the global level. Competitive analysis has been one of the significant facets of globalization. Based on detailed competitive and market analysis, the firm can become capable of differentiating the brand from other rivals (George, 2018).
Optimizing the unique furniture items (custom) can make the organization customer-centric, and it can lead to a competitive advantage. Balanced scorecard analysis has been used to streamline varying perspectives. Financial, customer, internal environment, and learning & growth perspectives are apparent. Global expansion has helped the organization to address profitability and revenue paradoxes, and it rationalized globalization. Customer acquisition, customer satisfaction, and customer loyalty have also been maintained. The firm has streamlined its internal function, such as innovative measures. Consistent learning based on market trends and needs is also evident. All these factors are favorable for business rationalizing globalization (Kunc, 2018).
Targeted Geographic Location for Global Expansion
Adequate strategic and geographic location for global expansion is crucial to keep the essence of globalization. Operating in Asia-Pacific regions, mainly in China, is highly recommended. This recommendation is also associated with multiple reasons. For instance, operating in China is lucrative as far as the potential of the market is concerned. In China, the middle class is rising with the need for unique furniture items, and the organization can exploit this opportunity incredibly well (Technavio, 2023). China has been in the spotlight due to incredible economic growth. It enabled a favorable climate for the organization as far as its spending power and lifestyles. There may be some crucial cultural considerations as far as the varying cultural preferences are concerned. In this rich cultural heritage, custom furniture has become relevant. Apart from this, in this highly competitive market, the company can exploit the opportunity to innovate and adopt a customer-centric approach. The combination of innovation and differentiation can be preserved in this highly competitive market. China provides an opportunity to set the ground for new strategic alliances or partnerships (Bashan & Armon, 2019). Alliances and partnerships with the local players in the market can make the market entry seamless and valuable. These alliances with the local players can facilitate evading risks and challenges (Bashan & Armon, 2019).
Background Information to Support This Decision
Focusing on China is a good move or strategic decision. Background information can provide a pertinent rationale to support this decision. For instance, there have been favorable economic indicators. GDP growth is excellent, indicating rapid economic development, a nd it further suits the global firm. Consumer spending is drastically increasing with time, as far as the rise of the middle class is concerned (Technavio, 2023).
Spending on home decor and consumer lifestyle is one of the favorable aspects that always supports this decision. Market size and potential are also good aspects. For instance, the size of the furniture market in this country is increasing with time. Rapid urbanization and changing lifestyles have been favorable aspects for the organization to move forward with pertinent approaches. Globalization (China) has been a practical decision as far as the changing mindsets of corporations. Corporations have strived for more stakeholders instead of just concentrating on shareholders. Globalization is the best decision to enhance stakeholder engagement and meet new social goals. Despite competition in China, especially in the furniture industry, the organization is looking to use external challenges or threats to improve its decision-making (Prnewswire.com, 2020). Indeed, it is a glimpse of strategic learning that can make the organization relevant and competitive. Integrating with local business experts in China can justify the democratization of the strategy, and it can contribute to the business incredibly well (Prnewswire.com, 2020).
Decision Supporting Overall Goal of Growth and Expansion
This decision can support the overall goals of growth and expansion in many ways. First, this decision can lead to excessive growth and expansion due to market size and potential. Indeed, China has an immense population, which can further help the organization shape multiple customer segments. Growth potential is also apparent as far as the lifestyles and rising middle class are concerned. The organization can set the ground for revenue diversification through this strategic decision (Kunc, 2018). It is all about diminishing dependence on specific regions or countries. Thus, revenue diversification has become probable, and it is kind of an advantage for the organization. The organization has made this decision to augment its global footprint and positioning. It is an excellent opportunity to streamline the unique custom furniture to differentiate the brand from local and international rivals and make a competitive advantage highly probable. The combination of innovation and learning can also be maintained, and it also indicates the significance of this growth and expansion goal (Kunc, 2018).
References
Bashan, A., & Armon, D. (2019). Quality management challenges in a dynamic reality of mergers, acquisitions and global expansion. International Journal of Quality & Reliability Management, 36(26), 1192-1211. doi:10.1108/IJQRM-06-2018-0161
George, B. (2018). The Changing Landscape of Global Businesses: Principles and Practices. Cambridge Scholars Publishing.
Kunc, M. (2018 ). Strategic Analytics: Integrating Management Science and Strategy. John Wiley & Sons.
Prnewswire.com. (2020, September 9). New global c-suite survey reveals need for rewiring corporate strategy development. https://www.prnewswire.com/news-releases/new-global-c-suite-survey-reveals-need-for-rewiring-corporate-strategy-development-301125773.html
Technavio. (2023, July 26). Furniture Market in China to grow by USD 57.74 billion from 2022 to 2027|Growing urbanization and middle-class population boosts the market growth – Technavio. https://www.prnewswire.com/news-releases/furniture-market-in-china-to-grow-by-usd-57-74-billion-from-2022-to-2027growing-urbanization-and-middle-class-population-boosts-the-market-growth—technavio-301885460.html
Description
Your work on your strategic global marketing plan is complete. You now have a plan that will implement, manage, and support a global strategy, but it is far from organized. You e-mail Deborah to inform her that you are almost ready and that the initial planning is complete. A little while later, the phone rings and you see Deborah's name on the caller ID.
“Hi, Deborah. What’s up?” you ask.
“I’d like you to present to the advisory board next week,” Deborah says. “They are very curious about your findings and would like to know if globalization is a good opportunity for the company. The board wants to finalize their strategic plan, and this may be a key part of it.”
After you hang up, you begin thinking through the different items that you will need to cover.
As you finalize the marketing plan, complete the following:
Is globalization a good move for the company?
What is your rationale behind this decision? Synthesize analysis conducted in previous units, including strategic considerations, cultural considerations, competitive analysis and balanced scorecard.
What geographic location should be a target for global expansion?
What background information can you provide to support this decision?
How will this decision support the overall goal of growth and expansion?
