Strategic Marketing Plan for Globalization Move Essay

Presenting a Strategic Global Marketing Plan

A reasonable and analysis-based strategic planning is crucial for a business entity to ensure sustainable growth and maintain a competitive advantage in the market. Globalization trends provide multiple opportunities for the company to grow geographically and operationally, thus enhancing its market presence and increasing revenues. For a company that is on the verge of building a sustainable marketing plan for strategic growth, globalization is a prioritized solution since it meets the requirements of contemporary economic trends. Also, the company that operates in a highly competitive market of textile materials and possesses sufficient supply chains and distribution points both inside and outside the domestic economy is encouraged to use these advantageous features to expand globally. In this report, the company’s perspective to enter a global market is discussed from the point of view of its beneficial contribution to the company’s strategic growth, increasing competitive advantage, and strengthening its position within the textile market. The validation of the decision will be provided on the basis of marketing analysis results, geographic location benefits, and the support of the overall goal of growth and expansion.

Globalization as a Good Move for the Company

The contemporary state of the world’s economy is particularly shaped by the influence of globalization trends. The omnipresent effects of technological advancement and the expansion of marketing into the digital world and the Internet lead to growth opportunities for businesses within various industries to enter the markets abroad. The growth of the company within the realm of the domestic economy is limited to occupying the leading position among the domestic competitors. However, for the enterprise to ensure sustainable growth and continuous competitive advantage on a global scale, expansion overseas might be a significant step forward. According to Petricevic and Teece (2019), the business world is now more dependent on macro-level governance rather than on micro-level governance. Indeed, a micro-level environment, including the internal company issues, leadership, corporate culture, or the performance of separate departments, is less influential for the company’s position among other competitors in the market. Therefore, political, global economic, socio-cultural, ecological, and technological factors become decisive for a company in its attempt to pursue strategic growth.

When developing a framework and a basis for expansion, an enterprise is expected to analyze the multiple factors contributing to its performance and providing space for improvement and growth. According to Baldegger (2012), the analysis of the environment is essential in perceiving the opportunities for corporate development and operational expansion. The company’s strong position in the domestic market and the availability of resources to enter the Chinese market allow for the decisive transition of the company to international marketing. Moreover, the company has access to resources and tools that will allow for effective assessment of the new business environment, employ competitive tactics to ensure that its entrance into the Chinese textile market will be successful.

Rationale Behind the Globalization Decision

When providing a rationale for the decision to globalize the company, the decision-makers are reliant on a variety of assessment and analysis tools. To make a decision, one has to synthesize the findings from the analysis of strategic considerations, cultural considerations, competitive analysis, and balanced scorecard. Internationalization, as an inherent part of globalization, involves addressing factors that determine the opportunities of a firm to integrate into a new international market. According to Monaghan and Tippmann (2018), an important feature for rapid and successful integration into the new environment is the utilization of sector-specific factors. The analysis of the company’s strategic considerations within the realm of the textile industry allows for stating that the company has an opportunity to enter the global market through China by assimilating its growth planning with the requirements of the Chinese laws, taxation regulation, and the market requirements. To minimize the financial losses induced by the high taxation rates in China, the company will use its representatives when constructing a textile plant in China. This will ensure the capacity of the enterprise to invest in strategic growth without significant losses influenced by the local legislation.

According to the PEST analysis, macroeconomic environments have been extensively assessed. The openness of China for foreign enterprises contributes to the opportunities of opening international facilities. Also, the investigation of socio-demographic and cultural characteristics and differences enhances the understanding of the potential of the company to effectively utilize human resources and ensure building relationships with buyers. Indeed, to minimize the budget losses on transportation of the personnel, local individuals should be recruited and trained. It will allow for better integration into the local culture and enhance the effectiveness of marketing interventions. The company has the potential for effective partnerships with local enterprises, which will facilitate its growth opportunities. At the same time, the analysis of the competitive market will contribute to the identification of strong and weak sides in the currently employed competitive strategy of the enterprise. It will also allow for a qualified assessment of threats and opportunities, which might determine the future of the firm on the global market. Another claim in favor of globalization is the high level of technology available that facilitates the opportunities to establish effective communication under the circumstances of cross-border cooperation.

Geographic Location Targeted for Global Expansion

The decision to enter the Chinese economy for the purposes of the enterprise’s global expansion is validated by the multiple advantages of China as a rapidly growing economy may provide. Indeed, according to Hedley (n. d.), the “rapidly changing demographics, rising incomes, increased consumer spending, and an increasingly open business environment have all helped to make the Chinese market increasingly attractive to Western businesses across a variety of industries” (para. 2). The China-based companies have more competitive advantages in comparison to the enterprises locating their facilities in other countries. The favorable geographical position, numerous population, economic growth trends, global expansion of the Chinese-based companies, and the flexibility of the industry-specific market all contribute to the choice of China as a targeted geographical location. These features will be further discussed in the nest section.

Background Information to Support the Decision on the Geographic Location

China provides the enterprise with numerous opportunities to construct a plant and occupy a competitive niche in the Chinese and global textile market. Indeed, as Hedley (n. d.) emphasizes, the country prioritized the global economic leading position by facilitating extensive development in various industries. As for the textile industry, such big cities as Guangzhou, Jiangsu, Zhejiang, and others are considered the locations most favorable for this industry (Hedley, n. d.). Therefore, the analysis of the Chinese internal geographical characteristics against the industry opportunities will allow for targeting the most favorable location.

The population of China is another important constituent affecting the decision-making of entering the Chinese market. With a population of approximately 1.3 billion people, China provides an opportunity for the company’s growth from the perspective of both the substantial consumer population and sufficient personnel availability (Hedley, n. d.). The company will be able to target the population on the basis of numerous factors and expand its market presence. Another important aspect is the employment of Chinese personnel; the people with the local background will be a competitive advantage on the market. Indeed, as Hedley (n. d.) claims, “a key benefit of hiring a Chinese manager is the local market knowledge and deeper understanding of Chinese business they bring to the role” (para. 26). Moreover, such a choice will be beneficial for the company’s budget since the costs of salaries in China are lower than in Western countries. Also, the knowledge and the local background of the Chinese staff will enhance the connections and relationships of the company with the suppliers and distribution chains. Thus, China is a reasonably chosen geographical location for the company’s entrance into the global market.

The Support of the Overall Goal of Growth and Expansion

Overall, as has been stated, the company now faces the need to expand its market presence and build the foundations for its sustainable growth in the future. One of the most effective ways to achieve that goal is by employing international marketing strategies and entering a global market. The capacity of the enterprise to meet the standards within the realm of taxation and legislation of the foreign market allows for making bold decisions. The type of industry, which is a textile industry, as well as the targeted sector of high-range products, creates a competitive advantage for the company. The analysis of the resources available to the company, as well as the macro-economic environment, ensures the high level of potential of the company to successfully enter the global market through China.

Refutation of the Opposing Perspective

Opponents of the globalization direction in the company’s strategic marketing planning might refer to several reasons why globalization is an adverse strategy. Indeed, as Petricevic and Teece (2019) state, the globalization trends in the economy and business performance have come to a crisis. The scholars exemplify such views by stating that “cross-border activities had become so common and growing so significantly that the world was becoming ‘flat’ (p. 1487). In other words, the tendency of all the companies within multiple industries to occupy the global market diminishes the opportunities for distinction and creates major constraints for growth since the competition is high.

However, these views should be refuted on the basis of the diminished negative effects in comparison with the contributions and enhanced opportunities globalization can present. Indeed, as Petricevic and Teece (2019) state, the globalization processes create space for enhanced open innovation, broader cooperative strategies, “global value chain orchestration, and global markets for know-how (p. 1488). The qualified and effective utilization of corporate and business strategies, as well as resources, will enable successful achievement of the goal for sustainable growth and expansion. Therefore, the decision to enter the global market has more advantages than disadvantages for the enterprise and should be pursued in the nearest future.

References

Baldegger, R. (2012). Management in a dynamic environment: Concepts, methods, and tools. Springer.

Hedley, M. (n. d.). China market entry strategy: A guide to entering Chinese business-to-business markets. B2B International. Web.

Monaghan, S., & Tippmann, E. (2018). Becoming a multinational enterprise: Using industry recipes to achieve rapid multinationalization. Journal of International Business Studies, 49(4), 473-495.

Petricevic, O., & Teece, D. J. (2019). The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise. Journal of International Business Studies, 50(9), 1487-1512.