Question

Explain the importance of the expanding scope of the marketing function as companies become global and compare and contrast the stages of international marketing involvement.

Answer 1

International expansion provides an opportunity for many businesses to conquer new regions and reach more of these customers, thereby improving revenues. U.S. companies such as Nike and IBM, for instance, retain activities in the Netherlands as it provides immediate access to 170 million European customers within about 300 miles. In reality, connecting Holland to European markets is one reason why UPS lately opened a fresh $150 million plant in Eindhoven, one of Europe's biggest investments of the company.

Many companies are expanding to diversify their assets globally, an action that can safeguard the bottom line of a company from unforeseen occurrences. For example, by operating effectively in another market, businesses with international operations can offset adverse development in one market. Companies can also use global markets to implement distinctive products and services that can contribute to maintaining a favorable income stream. Coca-Cola is an instance of a globally diversified business. In China, India, and South Korea, the firm recorded enhanced revenues this quarter, benefiting Coca-Cola globally.

The chance to access fresh talent pools is another major advantage of going global. International labor in many instances can give distinctive benefits to businesses in terms of enhanced productivity, sophisticated language abilities, varied instructional backgrounds, and more. For instance, when Netflix expanded to Amsterdam earlier this year, the firm commended the town for allowing Netflix to employ multilingual and internationally-oriented staff who are able to expertly "comprehend customers and cultures throughout Europe."

Companies also choose to expand internationally to gain a competitive edge over their rivals. For instance, companies that grow in industries where their competitors do not work often have a first-mover advantage that enables them to create powerful brand awareness before their rivals with customers. International development can also assist businesses gain access to new technologies and industry ecosystems, which can enhance their activities considerably