Oak Tree Consultants



Oak Tree Consultants

Introduction

Globalization can be defined generally as the growth of economic activity spanning politically defined national and regional boundaries. It finds expression in the increased movement across the boundaries of goods and services. Trade and investment, and often of people via migration. It is driven by the actions of individual economic factors -(Christopher 1989) firms, banks, people - usually in the pursuit of profit and often spurred by the pressures of competition.

According to Theodore Levitt (1983), new commercial reality - the emergence of global markets have come up because of advances in technology, communication, transport, etc. Those corporations geared to the new reality, benefit from enormous economies of scale in production, (Porter 1986) distribution, marketing and management. By translating those benefits into reduced world prices they can decimate competitors that still live in the disabling grip of old assumptions about how the world works. An industry does not globalize on it's own and every industry cannot be a global one. There are certain drivers which determine the potential for industry globalization. (Govindarajan 2008)

Industry Globalization Drivers, there are four broad groups of industry globalization drivers - market, cost, Government and competition. Together, these four sets of drivers cover all the major critical industry conditions that affect the potential for globalization. Drivers are primarily uncontrollable by the worldwide business. Each industry has a level of globalization potential that is determined by these external drivers.

Strategy for Global Competitiveness

The research carried out in the past reveals that competitiveness depends upon internal as well as external factors. It also depends on the macro-environmental factors such as the policies of the home country Government (whether favoring competition, support offered to the industries in terms of taxation, rebates and incentives, (ABARE 2006) fiscal and credit policies, etc.), the degree of consumerism in the home country, the nature of competition.

However, there is lack of a single model for measuring global competitiveness.

Competitiveness depends upon internal as well as external factors. However, there is a lack of a single model for measuring global competitiveness. Various scholars have done research on global competitiveness either on one or only on a few functional based competitiveness parameters. The term competitiveness can be applied to Oak Tree Consultants. The relationship between organizational competitiveness and market, industry, or national competitiveness is not well understood. In fact, economists have not yet devised a formal definition or theory of competitiveness. Neoclassical economists tend to associate competitiveness with external, market-based concepts such as comparative advantage, market distortions and price. Competitive analysis must include: first, an evaluation of competitiveness of product features; and second, an evaluation of the features of the process or internal operations used to produce the products and the subsequent process yields. Competitiveness is connected to the internal operations of Oak Tree Consultants and the technology used in those operations. Martin et al. (1991), defines competitiveness as the "Sustained ability to profitably gain and maintain market share". An adequate definition of competitiveness must include place, product and ...