SECOND GROUP REPORT MICROSOFT CORPORATION Case Study Solution
Impact of Cost
The cost of globalization are outweighed by the benefits which the company could possess through globalization. However, there are some costs which could affect the profitability of the company in managing the business. The increased cost through globalization will impact the marketing tactics of the company which in the long term will enable the company to capture the market share of the particular market. Hence, focus on promotional and marketing activities to capture new market could increase the cost but will provide benefit to the company in capturing market share which will increase the revenue of the company. Moreover, entering the new market exposes the company to several uncertainties and risks of cultural and business diversification with the presence of local market leaders within the market, which the company will compete in.
Political Strategy with regard to Globalization
Globalization by the companies is essential in this era of technological revolution which enables the company to attain the maximum benefit through expansion of business in different geographical locations of the worlds. Moreover, the political strategy that the company should adopt in order to enter different markets is discussed below.
Technological
Knowledge of different markets of the countries can be attained easily through technological advancement. Hence, the company should focus on increase in technological development as it is the major source of globalization. Technology is impacting globalization through industrial development and production, marketing tactics and distribution of products to almost every part of the world.
Political
Politics of different countries can impact the globalization of different businesses which affects the revenue base and customer base of the entire organization through the regulation and deregulations which are imposed by the law governing agencies of the country. Although the political environment of any country could be uncertain, however, the company should focus globalizing in those countries where the environment is favorable according to their business.
Cultural
As a technology company, Microsoft Corporation should focus on targeting the market of countries where there is cultural diversification which is an indication that international brand is recognized. Moreover, the company should also focus on targeting markets of those countries whose culture allow peoples to adopt the technology and become advanced. Hence, the company should also consider customization in order to fulfill the demand of the people belonging to different culture.
Economic
Micro and macro-economic conditions of the countries play a vital part in the process of globalization by the company. The company should consider the economic conditions of the company which are favorable for their business i.e. those countries where the use of technology products is essential for operating and managing businesses.
Social
Socialism in society impacts the globalization through various dimension of economics and culture. Social evaluation can be conducted by the company through the evaluation of daily activities performed by people living in different cultural societies and economies. Hence, the company should focus on its strategy to target those markets where the socialism among people requires the use of technology.
Conclusion
It is analyzed that the globalization is of vital importance in this era of technology, where the businesses are spread in almost all the disparate parts of the world. Moreover, globalization impacts the business favorably and the cost of globalization is outweighed by the enormous benefits which the company could attain through globalization. Hence, globalization expands the business worldwide and enables the company to adopt diversification in operational activities in order to be successful in the process of globalization..........
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