Introduction
According to Jones (2002), the business world is tremendously being influenced by globalization. Globalization has led to the emergence of global markets for goods and services as well as labor. Barriers that existed initially are now no more as entrepreneurs are able to carry out business across borders with so much ease.
This is all thanks to the technological revolution being witnessed the world over. To a great extent, the ever faster flow of information across the globe has made people aware of the tastes, preferences, and lifestyles of citizens in other countries. Through this awareness, we are all at varying speeds and at least in economic terms, becoming global citizens (Kluyver, 2010).
The following sub section recommends strategies that may be used by Moonglow as it seeks to reach the global market.
Globalization Strategies
Here, three strategies have been identified that may be used by Moonglow in order to succeed in globalizing its operations. The said strategies are joint ventures, networks, and strategic alliances. These are discussed as follows:
Joint Ventures
These are alliances that bring together two or more organizations which are united in order to pursue a common venture. Typically, the said organizations agree to jointly establish and share the ownership of a new business enterprise (Jones, 2002). The joint venture is usually established when both the parent and host firm are able to benefit from their strategic positions and comparative advantage.
Considering that Moonglow is very much interested in conserving the environment, one of the recommendations is that the company uses joint ventures to create alliances with those partner organizations that subscribe to similar values. Joint ventures will also present the company with a great opportunity to broaden its geographical market participation, acquire new knowledge, create economies of scale and scope and, most importantly, reduce risks.
It is, however, important for Moonglow to be aware of the fact that mutual advantages of the partners may often get eroded over time, leading to termination of the relationship.
Networks
Networks are a group of different organizations whose actions are coordinated by contracts and agreements rather than through formal hierarchy of authority. Over the years, the concept of networking with like minded firms for business gains has continued to gain popularity.
Through healthy networks, Moonglow may not need to acquire all it needs to carry out business. Although the company will be required to share its resources, it will also enjoy the benefit of using resources that are solely owned by firms that are within its network to advance its business operations.
The use of effective networks is a strategy that will allow Moonglow to specialize in what it is good at while letting other companies in its network to provide services they are excellent at. By so doing, the quality of goods and services will improve and the customers will eventually be happy (Campa, 2006).
Strategic Alliances
According to Yoshino and Rangan (1995), a strategic alliance links specific facets of businesses of two or more firms. Through strategic alliances, the participating firms get to benefit from using technologies, skills, or services they do not own.
According to Larson (2011), technological developments have induced firms to exploit to a larger extent the benefits of efficient size and economies of scale in production. This will open an avenue for Moonglow to penetrate new markets in foreign lands and specialize in producing goods that will guarantee them greater returns.
References
Campa, J. M. (2006). Corporate Restructuring and M & A Activity. CESifo Forum. München: Spring 2006, 7 (1): 17.
Jones, M. (2002). Globalization and organizational restructuring: A strategic perspective. Thunderbird International Business Review, 44 (3): 325.
Kluyver, C. D. (2010). Fundamentals of Global Strategy. New York, NY: Business Expert Press LLC.
Larson, D. (2011). Global Brand Management – Nike’s Global Brand. The ISM Journal of International Business, 1(3): 1D.
Yoshino, M. Y. & Rangan, U. S. (1995). Strategic Alliances: An Entrepreneurial Approach to Globalization. Harvard Way Boston, MA: Harvard Business Press.