Essay on What Are The Main Challenges Of Globalization?
Globalization is the amalgamation of ideology, cultures, civilizations and perspectives, with technology, goods, and services, in order to create a “Global business culture”.
What are some of the main challenges of Globalization?
Localization of a good or service is one of the core challenges of globalization; to have the ability to ensure your product is successfully launched and is received well in your chosen local marketplace. This requires a lot of effort to test internationally, and then test locally, to ensure that branding and tastes match with cultural expectations and that the “Global business culture” is not perceived to be overpowering local cultures, with loss of sales as a result. A case in point is the perception of global brands in Latin America , which analyzed 669 brands, and sought to measure brand loyalty through: “Affinity, difference, brand leadership, fame, and price”. This study found that local brands have more loyalty as they are perceived as originating from the culture, whereas big brands are perceived more as an imposition of one culture over another. This factor could be stronger in other countries that are less diverse and more culturally aware.
Ensuring geographic reach of the resources required to make a product or launch it in a foreign market is also a key challenge of management in an organization. Policies and procedures must be in place to ensure that not only the logistics of product introduction are…