One of the advantages of globalization is that it helps to increase the demand for goods and services (Collins, 2010). Increase in demand for goods and services results into increased production, as well as increase in employment. Globalization has enhanced spread of technology in all parts of the world. There is a lot of technological advancement in the world today. People can share real-time information from different locations of the world. This has enabled developing countries to progress with the same pace as the developed countries (Collins, 2010). Moreover, globalization has created a worldwide market for goods and services manufactured by different companies. Consumers now have a variety of goods and services to choose when making purchasing decisions. However, globalization has led to increased unemployment rate in the developed countries. This is because globalization has enabled companies to outsource cheap labor from developing countries. In addition, globalization has led to cultural degradation in many countries because of introduction of Western culture on Eastern thoughts (Collins, 2010).
Globalization has made companies to embrace global marketing. The unique thing about global marketing is that different countries of the world have different economic, political, and cultural environments, which affect business. Therefore, when undertaking global marketing, a company has to tailor marketing strategies to suit different global market environments (Ghemawat, 2007). One of the challenges of global strategy is “management of differences that arise at the borders of markets” (Ghemawat, 2007). Different markets have different ways of doing things. It therefore becomes hard to implement a strategy in two different markets, which have different market rules. Another challenge of global strategy is decentralization. It becomes a challenge for company implementing a global strategy to maintain effective control due to problems decentralization (Ghemawat, 2007).
International/global/multinational strategies that a company operating globally can adopt include adaptation strategy, aggregation strategy, and/or arbitrage strategy (Ghemawat, 2007). Adaptation strategy entails seeking to increase market share and revenues by maximizing local relevance in every country where a company has market presence. Aggregation strategy entails trying to gain economies of scale through creating regional or global operations. On the other hand, arbitrage strategy entails taking advantage of the differences that exist between regional and national markets, usually through locating different parts of supply chain in different places (where the market conditions are favorable for a specific part of supply chain). In my opinion, the most suitable strategy is adaptation strategy. This is because it allows a company to offer differentiated goods in each market thus, reducing competition, enhancing local responsiveness to the products, as well as minimizing political, cultural, and economic risks.