Term Paper on "Future of Global Marketing"

Term Paper 7 pages (2030 words) Sources: 0

[EXCERPT] . . . .

Future of Global Marketing

Global Marketing

Enhancement of the concept of 'Global Marketing' is being extensively fostered in both the fields of professional as well as domestic societies. The domestic markets cannot single-handedly generate the income as well as the growth potentialities needed by several business enterprises. Several business enterprises are desirous of marketing in global markets; however they are faced with the deficiencies of the expertise as well as financial resources to market abroad in an efficient manner. (Stephens 25) Global marketing points towards comprehension along with explanation of the countrywide variations in detecting similarities relating to transnational issues. It also deals with country specific operational adjustments relating to marketing mix factors to attaining international cross-operational integration. But the contextual elements of global marketing are varying to make differences across nations less important for global marketing practices. (Sheth; Parvatiyar 18)

Differences between the North America market and the Asia market

The Asian market is more widespread and more divergent than the North American market. During the later half of the last decade we have witnessed that the American economy is not appearing strong as it normally used to be. (the art of doing business in Asia) in the Asian market there are several powerful players like Japan, China, India, South Korea, Taiwan, Singapore, etc. The Asian market is being dominated by the supremacy of Japan, whose impact extends over any other global economic authority by means of the investment in the region as well as by business dominance. Japan has been seen to have exerted the competitive benefits of industrialization which the West had dissuaded -- by integrating the discipline as well as efficacies required to strengthen a Japan which was harassed militarily, to grow into an economic powerful nation and is continuously developing. (Asian Capsule) the community-based culture of Japan representing the Asian market intrinsically promotes more benevolence among the various business firms than that of the North American culture of 'rugged individualism' as well as that of 'social heterogeneity'. The individualistic North American creates more time in evolving partnerships between firms as compared to that of the Japanese culture representing the Asian culture. Many of the U.S. firms have now recognized that the Japanese system caters to several advantages over arm's-length links with regard to supply chains. (Comparison of Asian and North American automobile manufacturing practices)

Let us take an example of the automobile industry showing a comparison between Asian and North American markets. For the Asian market, we shall concentrate on Japan. Honda, the Japanese automakers have emerged to be the leading automakers in the world strengthening the Asian market. Further, the Japanese automakers have enhanced the market share in the North American market by means of new 'luxury' brand names like, Lexus Acura and Infinity. Additionally, the traditional compact models like Camry of Toyota and Accord of Honda have become larger and lavish. In many of the performance measurement relating to manufacturing, Japan representing the Asian auto market surpasses over the auto manufacturers of North America. Japanese Auto manufacturers generate cars which have more speed compared to other manufacturers, about 4-hour's more speed than the Big 3 on an average. The fraction of faults also appears to be lower in case of Japanese automakers site irrespective of the fact that it is more flexible. With regard to the concept of product diversity, the auto manufactures of Japan have introduced many unique models from which the consumers can choose and less option varieties thus enhancing the basic variety. Further to show a comparison of the North American and Asian market we can understand that during the last fifteen years, Ford has shut down enough potentiality in the North American market and has begun to across over to the Japanese market representing the Asian market. The suggestion of improving collaborations with the supply chain extracted mainly from Japanese practices appears to have considerably assisted Ford on its growth as well as profitability front. (Comparison of Asian and North American automobile manufacturing practices)

Next to Japan, the Asian market is being represented by China which is the most considerably emerging and developing global consumer market and is far more rapidly developing than the North American market. The rapidly growing China is emerging to be more dominating for the massive prospective of its local consumer market and its legions of expatriates as well as refugees operating in the Chinese as well as international business throughout the world. (Asian Capsule) Considering the prospects of the Asian market than that of the North American market, Ford is expanding their base to China as well. In China, Ford initiated to manufacture light trucks in co-operation with Jiangling Motors. Along with the 20% of the Jiangling Motors, being taken over by Ford in the year 1995, another four manufacturing joint units have been functional in China to manufacture glass, radiators, plastic as well as electronic parts. (Comparison of Asian and North American automobile manufacturing practices)

India is growing considerably as the second largest Asian market against the North American market. India and China is already annually bringing out about 50,000 engineers as well as scientists that amounts to about eight times that of the United States. China also ranks second only next to the U.S. In the field of it hardware production and the software industry of India has already excelled the textiles trading quantity against that of the U.S. implying that India is already dissuading from being dependent on the traditional industry. (Brief - Park Seung: The Future of the Asian Economy) With the potentialities of the high competitive programming as well as it expertise, India exports a huge amount of this talent while still having high quality it centers in various cities. With regard to India, Ford has also found India to be a competitive Asian market destination against the North American market. In India, 'Mahindra Ford India Ltd.' initiated production as well as distribution of Ford products starting in mid-1996 with the Ford Escort, and in 1998 with Fiesta. (Comparison of Asian and North American automobile manufacturing practices)

Next to China and India, South Korean market representing the Asian market has emerged to be an economic champion having already a mature consumer market against the North American market. (Asian Capsule) South Korea has now emerged from a post-colonial war-affected nation having a GDP of only about 80 U.S.$ to 11th economic power in the world having a per capita GDP of about 17,000 U.S.$. The significant growth of South Korea since the Korean War, initiated with the government influenced growth of heavy industry from the 1970's, to being competitive in 1990's in the steel as well as shipbuilding and presently being popular in auto production as well as it areas has been in a position to compete against the North American market. (Brief - Park Seung: The Future of the Asian Economy) in South Korea, the Ford is functioning in collaboration with two established companies, one to manufacture automotive air conditions and the second one to manufacture electronic parts. (Comparison of Asian and North American automobile manufacturing practices)

Next with regard to Vietnam representing the Asian market, companies other than Ford like that of Intel are viewing it for its expansionist policies. In Vietnam, as the testimony of generated confidence, Intel decided in the first part of the year 2006 to invest about $350m in establishing a new factory. And even before the year got over, the American chipmaker still moved beyond and increased its investment to $1 billion. In the subsequent eight months Intel had promised more money to Vietnam as it had to China in the earlier decades. (Michael 6) Further, in contrast to the North American market, Singapore holds a predominant place while representing the Asian market. Singapore irrespective of its relatively tiny size in terms of geography as well as population in South-East Asia is one of the most steadily progressing countries of the world. And Brunei joins with Singapore to be one of the wealthiest nations in the world due to its enormous oil wealth. All these countries of the Asian market put up a strong competition against the North American market. (Asian Capsule)

Further, all forecasts presently indicate towards a sluggish North American market for the year 2007. The recently revised growth forecasts predict a decline from 3.6% in the year 2006 to 2.9% in the year 2007. The enhancement in labor force coupled with growth in terms of productivity recognized as the fundamental causes for the relatively high levels of growth for several years will be less conducive in the coming years and would entail the North American market to a reduced growth of about 2.5%. The rate of increase in revenues as well as profits from the Asian market excels the figures of the North American market. Companies like Microsoft, General Electric, Oracle and Dell infuse more and more to the buoyant and irresistible growing markets in Asia particularly, China, India and the several Southeast Asian nations. They market in such nations;… READ MORE

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