The influence of globalization process on the competitive business strategy

Abstract

The main object of this paper is present the influence of globalization process on the competitive business strategy. The process of internalization has been viewed as one of the most significant processes typical of modern world economy. The term itself means the spreading and exceeding of economic matters over the nation-state territorial boundaries. Providing that internalization is a global process characterized and accompanied by the rise of new economic forms and the vanishing of national products, technologies and national economy, it is being called globalization. Globalization is a process leading to the mutual integration of society on global level. The process of has been viewed as one of the most significant processes typical of modern world economy. International monetary fund defines globalization as the growing economic interdependence of countries on global scale brought about by the increasing volume and variety of cross-border transaction in goods and services and of international factor flows, and also through the more rapid and widespread diffusion of technology. Changing conditions and market structures demand that many companies devise new strategies, as they search for a competitive place in their home markets and take advantage of emergent market opportunities. So a firm may succeed. its strategy must be consistent with the new environment in which it will operate. The company concept emphasizes that companies must consider both their customers and their competitors when developing a strategy. Successful companies satisfy the needs of customers in their target market better than the competition does. Any business activity that a company engages in can be a basis for a sustainable competitive advantage. A sustainable competitive advantage is an advantage over competition that can be maintained over a long time. To build a sustainable advantage, company typically don't rely on a single approach such as low cost or excellent service. They need multiple approaches to build their position. For formulating and implementing strategy the best global companies use a systematic approach that begins with market segmentation. Market segmentation is the process by which a market is divided into smaller subsets of consumers or organizations (segments). Market segmentation, with the continuation of target marketing and positioning support the creation of offer for target segment in international markets. The objective of market segmentation is to divide consumers to groups so that it is possible to identify and select adequate target market. Intercultural marketing conception adopts and respects socio-cultural nuances of various national cultures. The conception is based on the premise that culture influences customers' purchase behavior and makes use of standardized methods, which are adapted to the local conditions. In order to evaluate the differences in cultural consumption behavior it is possible to use a model designed by Geert Hofstede and Fons Trompenaars, who are interested in tracing basic cross-cultural behaviour models. These models - trends are called cultural dimensions.