BU491 Lecture 9: When you shouldn’t go global
Document Summary
Many companies assume that there is a need to go global, the accelerated removal of political and regulatory barriers and investment along with. Just because it makes sense for a rival doesn"t mean it makes sense for you. Even if benefits exist you may not be in a position to realise them. Even if you are able to realise the benefits unanticipated damage to your business may make the endeavor counterproductive. Globalizations siren song: companies do not ask these questions because of their assumptions about the virtues of going global, this becomes extremely common in three industries, deregulated industries: in formerly state owned industries for example telecommunications. Faced with limited growth and increasing competition they have accepted that geographic expansion is the best way to exercise freedom. They enjoy significant savings by sharing resources across operations. Frequently pay too much to enter foreign markets. Many are glocal can vary greatly depending on location.
