Free Essay About Why Global Competitiveness Is Important
Management (GOM db1)
In the current business environment, competing globally has become imperative to survive and grow Large multinational companies have access to international markets. Armed with huge capital resources, they can easily enter many countries and grab growth opportunities from domestic players. Thus, domestic players, despite their advantage of knowing their own market, must be prepared by strengthening their competitiveness in the areas of product or service innovation, process improvements and operational efficiency to lower cost.
On the other hand, for the multinational companies venturing into foreign markets, they have to adapt to cultural differences in the countries where theyoperate. This includes having a global management expertise, and installing compatible system and technology that suit both local and international operation in order to ensure their success.
Walmart’s successful domestic and global expansion is an excellent example why global competitiveness matters. After establishing a business model that enabled them to grow rapidly in the US market, it ventured into the global market. With its vast capital resources, Walmart’s International segment have successfully penetrated 27 countries, vying with domestic and other global chains of supermarket and discount stores (Wal-mart Stores, Inc., 2014).
Advancement in Operations Management in other countries that have affected US Firms
Market/labour and technology development contributed significantly in improving operations and lowering the cost of doing business in other countries. This posed as a challenge among US industries to operate at a lower cost in order to compete in the global market.
For Walmart, it leveraged on its automated system i.e., from sourcing, distribution to sales. This became instrumental in enabling the company to swiftly replicate its business model internationally. On the other hand, while its international team is sensitive to cultural differences in the countries where it is present, it remained focused in cascading the company’s vision of operating for less to enable its customers to “Save Money and Live Better” (Wal-mart Stores, Inc., 2014).
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