Everyday increasingly more and more businesses are taking their operations and going global. Before a company decides to go global they should conduct an extensive research report, learning everything possible about the new market in which they are going to take part in. If a company takes the right approached toward globalization then their profit can grow substantially. Successful businesses today in the realm of global business “think globally, and act locally”. Sometimes companies going global can run into trouble in their new market, which could lead to a financial lose. Many different variables can contribute to an unsuccessful attempt in globalization such as the wrong marketing scheme or the infrastructure of the new market. When a company decides to go global they have to adapt the new social and technological environmental variables that face them in the process.
Stepping into a new market involves becoming accustomed to the social variables. In a company’s efforts to conquer a new market they may have to deal with language barriers and religious differences. Sometimes the cultures ways of life will not be understood until the product is in the market. Social variables can be in written and spoken commun
Conducting research, teaming up with local business, and catering to the new markets needs will enable companies to effectively enter new markets. A major lesson that we learned from Wal-Mart is that foreign markets do not want to be bombarded with American goods. On the other hand, Starbucks “ market-map the whole country… look at every single city… all the streets in the city… the demographics… where the retail flows are” and for all of it’s hard work in being financially rewarded. EBay trying to emerge into the Chinese market is purchasing a third of company called EachNet, which is the leading internet auctioneer. This move on eBay’s behalf to take an early jump into the Chinese market may prove successful in a couple years. When Universal Studies decided to open an amusement park in Japan they had many challenges in adapting into the Japanese market. One factor is “including a park layout that reflects their preference for systematic, clock wise traffic flow; a shop that sells edible souvenirs like dinosaur shaped bean cakes; and rest rooms that have Japanese style toilets.” If the park is successful it estimated to bring in $2.41billion to the Japanese tourism economy. Taking a company to the next level can change a
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