M. Fatih Akkaya, an under-secretariat of foreign trade expert, has an article titled “Global Marketing Strategies” that talks about what organizations should do to achieve global success. The article identifies that the world is shaped up by globalization and technology. In matters concerning marketing, production and finance, it is important to assess economic realities and human preferences. This means that an international organization needs to study various markets and determine what people would prefer. The organization should then determine the how well a product will perform in both local and international markets. According to Akkaya (2011), Global Corporation and Multinational Corporation mean different things. A Global Corporation produces and sells its products consistently worldwide; treating the global market as a single entity. On the other hand, Multinational Corporations adjust their practices and products in various regions for financial gain. Multinational corporations are aging and unsuitable in the current markets (Bradley, 2005). However, global corporations are profitable since they offer standardized practices and products suitable for the whole globe (Akkaya, 2011)
Financial markets are not the same around the globe in aspects such as consumer behavior, market practices and prices (Kotler & Armstrong, 2008). This means that a firm that wants to become competitive should do a careful study of the markets they want to venture. A firm needs to establish suitable operation methods and employ suitable management skills depending on the nature of a market. This means that a firm’s production and finance heavily rely on marketing strategies. According to the article by Akkaya (2011), the decision to venture abroad should be a carefully thought and strategized. It should not just be a decision out of impulse or simply a reaction. Reasons for expanding from a domestic market to a global market vary, and a firm should look at these decisions carefully. The reasons for expansion depend on factors such as tax structures, peace, the product life cycle, demographic conditions and economic trends (Bradley, 2005). Some corporations do not venture outside until they have fully established their business locally.
Many corporations seek to expand their market, improve their performance and profits. However, a business cannot pursue all of its ventures, and they have to weigh out between geographic expansion and product expansion. Most return can be brought about by proper strategic methods that resolve the battle between expansion and production (Akkaya, 2011: Bradley, 2005). In this case, global corporations sometimes differ depending on the amount of their production and the customers they target. Corporations need to have a strong global presence since this is what determines their global success.
The article by Akkaya (2011) is very insightful in matters concerning strategies for global markets. It has information about the many issues to consider when a company wants to expand internationally. The company has to find balance marketing, production and finance (Kotler & Armstrong, 2008). When dealing with foreign markets, a company has to look at issues such as exporting and licensing. Sometimes the company has to decide between producing locally, then exporting, or doing their production in the various international companies (Akkaya, 2011). The big companies similar to the small ones find financial difficulty when they want to venture into international markets. Corporations have to look at what they are producing and then evaluate whether it is prudent to expand in terms of production or in terms of geography.
References
Akkaya, M., F. (2011). Global marketing strategies. Retrieved on February 24, 2014 from
<https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CCgQFjAA&url=http%3A%2F%2Fwww.ekonomi.gov.tr%2Fupload%2Fbf09ae98-d8d3-8566-4520b0d124e5614d%2Ffatih_akkaya.pdf&ei=Z-cKU-_PIcPa0QXau4CwDQ&usg=AFQjCNFh4KOiMC59aUc6LrO77OocykWVGQ&sig2=weUuyUNTP4SQ-7mDVl0Qcg&bvm=bv.61725948,d.d2k>.
Bradley, F. (2005). International Marketing Strategy. Pearson Education.
Kotler, P. & Armstrong, G. (2008). Principles of Marketing (12th ed.) Upper Saddle River, NJ :
Pearson Education.
