Read more Globalisation Globalisation refers to the integration of markets in the global economy, leading to the increased interconnectedness of national economies. Markets where globalisation is particularly common include financial marketssuch as capital markets, money and credit markets, and insurance markets, commodity markets, including markets for oil, coffee, tin, and gold, and product markets, such as markets for motor vehicles and consumer electronics. The globalisation of sport and entertainment is also a feature of the late 20th and early 21st centuries.
Sivakumar,Related Topics: Thus, entry strategy in emerging markets is likely to become an increasingly important issue for academic researchers and marketing professionals. First movers are often thought to garner advantages over later entrants; however, the degree to which these advantages prevail in emerging markets is not known.
To address this gap in the literature, the authors synthesized research findings from two research streams one on pioneering strategies and the other on developing markets and examined the effects of emerging market conditions upon four dimensions of first mover advantages: Emerging Market Conditions and First Mover Advantages The research review suggests that economic, technological, social, political, and marketing conditions in emerging markets have both positive and negative effects on first mover advantages.
These conclusions are tentative and merit further investigation. First mover economic advantages are facilitated by low labor costs, dual economies highly skewed internal income distributions that create short-term opportunities for first moverseconomic growth, the concentration of affluent populations, pent-up buyer demand, lack of marketing sophistication, and low levels of advertising.
Economic advantages are diminished by emerging market conditions of low per capita income, poor infrastructure, indirect and fragmented distribution systems, foreign investment restrictions, price controls, and tariffs and import limits.
First mover preemptive advantages are enhanced by the predominance of low quality goods and services, limited qualified technical personnel, governmental support, and low market development. They are inhibited by oligopoly or monopoly control of scarce assets, emphasis on personal relations in commercial transactions, tariff and non-tariff barriers, and political uncertainty.
Technological advantages encounter mostly inhibiting conditions in emerging markets: Technological benefits are facilitated by low per capita income, which creates opportunity for economically priced goods derived from first mover process efficiencies, and by low technological competition.
Behavioral advantages are aided by governmental support, low competition, and limited marketing sophistication. These help first movers establish prototypicality the ability of the product to establish the ideal or set the standard for its product category and reputational effects.
These advantages are somewhat diminished by a predominance of inexpensive local products, underdeveloped communication infrastructures, and cultural fragmentation.
Managerial Implications Any consideration of a pioneering strategy for an emerging market should be accompanied by an evaluation of a host of economic, technological, social, political, and marketing-related factors. Many conditions specific to developing markets moderate first mover advantages.
Hence, the notion that first mover advantages accrue automatically by virtue of entering ahead of others must be further investigated in the context of emerging markets. Another implication is that firms that have decided to be pioneers in emerging markets should expect environmental obstacles and prepare specific measures to overcome them.
The third implication relates to the larger question of whether or not it pays to be a pioneer in an emerging market. Although many emerging market conditions appear to inhibit rather than enhance first mover advantages, companies need to account for the endogenous internal qualities that may uniquely qualify some firms not only to embrace the risks and costs associated with being first in these markets, but also succeed via their ingenuity, tenacity, and resources.
Such firms will be able to enter markets ahead of the pack, overcome negative conditions and thrive, reaping many benefits for a long period of time. Cheryl Nakata is a Doctoral Student and K. This report is not currently available online. To purchase a print copy of the full report, please contact pubs msi.Globalisation is a process that refers to the increased integration between different countries and economies as well as the increased impact of international .
Terri R. Lituchy, Anny Rail () Bed and Breakfasts, Small Inns, and the Internet: The Impact of Technology on the Globalization of Small attheheels.coml of International Marketing: Summer , Vol. 8, No. 2, pp. Do you really want to delete this prezi? Neither you, nor the coeditors you shared it with will be able to recover it again.
Delete Cancel. Globalization's impact on operations and supply chain management is multifaceted. In this lesson, we will discuss four impacted areas: procurement and sourcing methods, inventory management. Globalisation Essay: The Positive and Negative Impacts of Globalisation on the Developing World What is Globalisation?
Free words Globalisation Essay: The concept of globalization is currently a popular but very controversial issue, and has been one of the most widely debated issues since communism collapsed.
The adoption of a standardized marketing strategy characterized by uniform application of the marketing mix elements with minor modifications will have a significant impact on the capacity of the.