An Analysis of a Successful Fast Food Restaurants Business Strategy: Al Baik - Literature review Example

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Literature Review on Why Companies Go Global: Globalization has affected almost every industry and also individuals in some way or the other throughout the world. Marketers who take the firm international do so because they already have a strong and reliable domestic market share.
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An Analysis of a Successful Fast Food Restaurants Business Strategy: Al Baik
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The other reason might be that the target market has become saturated to offer any kind of substantial growth. Sometimes by way of evaluating the key indicators of the marketing environment, the marketers have the chance to move towards globalization at an appropriate time. For example the German footwear Adidas had jumped into the global market after a successful promotional ad campaign which says “Impossible is Nothing”. The company believe that the timing were appropriate for them to enter the global market and also win the global game. Most of the large caps and mid caps firms have already participated in the global commerce and most of the domestic marketer whether large or small have recognised the need to investigate the need whether to market the product of the company overseas. Thus to go global is not an easy step, careful evaluation and implementation of strategy is required. Some of the most common reasons that the marketers cite before going global is globalization of the potential customers, emerging of new customers in the global environment, competitor’s globalization with reduced trade barriers, technological development and enhanced response from the customers (Boone & Kurtz, 2011, p.219).
Why Companies Go Global
Going global, over the period has become an important way of conducting business for most of the firms while the rest of the firms have been operating in the domestic market. ...
As more companies are going global, there has been a gradual change in the dynamics of business environment. Thus going global is similar to a new adventure which involves a strong and bold mission (Pearl, 2011). But it is not yet clear whether globalization has been regarded as an external issue for the business environment which generally causes organisation to react also a strategic issue which motivates the organisation to initiate respective actions. Most of the times it is the combination of reactive and proactive approach which forces companies to go global and the remaining firms does so because of the pressure which is brought in by the companies which have already gone global. To a very large extent, it depends on the understanding of individual firm and the capabilities in which globalization is expected or assumed and influence the competitive position of the firm (Ungson & Wong, 2008, p.28). Firms competing in the overseas market provide ample opportunities for companies in earning returns in a way that would exploit the core competencies and at the same time allowing growth opportunity for the firm in the future with the help of local learning. For a majority of the firm, going international becomes critical with respect to long term success. Some of the firms believe that going global is inevitable only if the firm is able to compete against the domestic rivals but with global mind set and international experience companies are going global. Most of the big brands such as FedEx, Wal-Mart, Nike and Starbucks have realised that the greatest potential for growth lies in the overseas market. Even for online companies, going global is essential for growth. The environment has become very complex for ...Download file to see next pagesRead More
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