Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by technology innovation. An excellent example of globalization is the growth of coffee around the world originating from Ethiopia and dispersing to other nations around the world like Indonesia and Columbia.
Grown in three continents (Africa, Asia, and the Americas), coffee is closely linked to the economic development of many nations. In Ethiopia and Uganda, it is the primary source of income for the country.
International laws regulate the industry and aim to prevent price dips and spikes. Farmers around the world are part of cooperatives supported by international NGOs, to obtain better prices for their crops, as well as to deliver social services for their communities. This has helped many of these poor countries and their citizens develop economically and raise their standard of living.
Another key benefit is that FDI interests into these countries raises government standards reducing corruption and making their economies more stable and effective.
Not all of the impacts are positive though, environmental degradation and greedy commodity traders can certainly hurt the industry and its supply chain.
Also, opponents of globalization claim that the creation of an unfettered international f...
... middle of paper ...
...in their espresso machines. This becomes a competitive differentiator as they expand rapidly into Asia and Americas allowing their baristas to create high quality products and encourage the home consumer to acquire the same technology.
Technology also has a critical bearing on the de-commoditization of luxury goods. Globalization has a tendency to commoditize all of its complements and technology innovation is a natural anti-dote to this effect. It does this by becoming a barrier to entry for other low cost firms and increasing the level of industry rivalry. With the complex value chain of coffee, this characteristic is disruptive enough to generate a sustainable competitive differentiator for Illycaffè. There is no surprise that their investment in the University of Coffee and the Trieste Science Prize has helped them triple sales turnover in the last 10 years.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- William Bastianelli 2/23/15 MKG-366H-90-142 Research Project Outline Tapping into Global Markets and Global Marketing Introduction In today’s society nothing is confined to just one country, everything is global. With everything being global, were seeing companies that have attained global recognition, and are known on every corner of the globe. It is no accident that companies, like McDonalds, Apple, and Coca-Cola, are known everywhere. These companies have mastered the most important aspect of reaching global markets, and that is global marketing.... [tags: Marketing, Culture, Marketing strategy]
1483 words (4.2 pages)
- 5). In October of the same year Starbucks entered New Zeland. The company had a franchisee for KFC and Pizza Hut, to open retail stores in the country (The Seattle Times, 1998, para. 2). Then Starbucks took the market of Taiwan, Thailand, Malaysia. In 1999 the brand extended to China, South Korea and Lebanon. The next year it added 7 more countries, then 3 more in 2001, and then 9 more in 2002. After that Starbucks started just filling the gaps in the cities of those countries, and add the new ones to the list of its global marketing.... [tags: Coffee, Starbucks, Espresso, Marketing]
1145 words (3.3 pages)
- Global Marketing Research Case Study Analysis When deciding if a company should expand business into a global market, it is important to conduct market research. Global market research gathers and collects data and information and identifies possible issues that an organization may face. Conducting market research is a positive step to begin a globalized marketing strategy. Sperry/MacLennan Architects and Planners David Aaker, V Kumar, and George Day (2007) present a case study about an architectural organization that concentrates in recreational facilities, Sperry/MacLennan Architects and Planners (S/M).... [tags: Marketing ]
1175 words (3.4 pages)
- 1. McDonald marketing strategy uses a combination of global and local elements. In their global marketing strategy, they focus on standardization. They try to use standardization throughout all McDonald’s so where ever you eat a Big Mac, the customer can expect the same taste, quality and experience. To have professionalism within the workplace, education for McDonald’s is provided by them to teach government health education programs and what the requirements are of the lower skilled workers. This allows the company to create formalization throughout all McDonalds.... [tags: McDonald's, Marketing, Local government, Hamburger]
1096 words (3.1 pages)
- 1. Legend holds that an Ethiopian farmer by the name of Kaldi ‘discovered’ coffee when he noticed that his flock had increased energy after eating the red berries of this strange-looking plant. Coffee is now grown around the world, from the subtropics of Indonesia, to the highlands of Colombia. Is this globalisation. What are its pros and cons. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by technology innovation.... [tags: Marketing]
2009 words (5.7 pages)
- Two opposite viewpoints for developing global marketing strategy are commonly expounded. According to one school of thought, marketing is an inherently local problem. Due to cultural and other differences among countries, marketing programs should be tailor-made for each country. The opposing view treats marketing as know-how that can be transferred from country to country. It has been argued that the worldwide marketplace has become so homogenized that multinational corporations can market standardized products and services all over the world with identical strategies, thus lowering their costs and earning higher margins.... [tags: International Marketing ]
1811 words (5.2 pages)
- Solid Global Marketing decisions involve months of research. They also include a high degree of planning and internal strategizing. Factored accounts in the strategies are where the organization would like to be in three years, target audiences, spending and profit margins and eventually how to achieve the companies' ultimate goals. Advanced planning gives a number of advantages: Helps coordinate activities Helps prepare for emergencies Gives activity continuity Integrates functions and activities Helps in a continuous review of operations.... [tags: International Marketing Business]
1059 words (3 pages)
- Marketing in a Global Economy Vision. There's a word that hearkens back to the early '80s, at least in current management thinking. Yet despite its presence in the leadership vocabulary for more than two decades, many companies are today struggling to draft the right vision for a hyperactive, global business environment. This paper is intended to offer an overview of some of the aspects of conducting business globally and aims to identify ways in which businesses can tap the gains of this process, while remaining realistic about its potential and its risks.... [tags: GCSE Business Marketing BTEC Coursework]
1600 words (4.6 pages)
- Global Marketing Internet Paper The internet’s first role is the delivery and collection of timely information about products and services. We will have a look at the realistic role that the internet might play in assisting firms to reach their international marketing objectives. There are two types of impediments to the internet’s adoption and growth in international marketing: structural and functional. Structural issues are likely to have greater impact on consumer internet marketing than on business-to-business marketing.... [tags: essays papers]
1947 words (5.6 pages)
- New and improved products are developed almost daily, they are launched in the marketplace in hopes that the product will be accepted and purchased, the fate of any product is determined by consumers through their acceptance and purchase or rejection of the product. New product introductions are becoming more and more expensive and the product success rate is less than in previous years. The number of promotion methods to choose from can be overwhelming, and finding the best method which will allow the Palm Mercury to flourish in the market is a very challenging step to overcome.... [tags: essays research papers]
401 words (1.1 pages)