Global village has emerged as one of the dominant mantras in the growing competitive market due to the clustering market opportunities worldwide. Any firm which has the ability to view the entire world as the market place of the organisation not depending on the specific markets or regions can gain sustainability through wider access to markets, consumers and greater variety of goods and services. Gaining competitive advantage in global market depends on the geographic scope and diversity of the firms operations and their inter linkage with other firms, as well as the extent of market integration and interdependence. Today market openness associated with globalization has increased the speed, frequency and magnitude of access to worldwide markets, including all tangible and intangible aspects of commerce, by a new and more diverse set of competitors. This paper examines how an organization should take advantage of global opportunities and meet the challenges in the global environment. It also tries to analyze how developing a competitive advantage differs in global market as compared with a domestic market.
Introduction
International marketing is enormously growing because business has become increasingly globalised. The firms facing critical competition and ever- changing technological challenges are discovering that international trade is not only a strategic option to expand but it may be a requirement for corporate survival. Today terms like global village and world economy is becoming a prominent mantra. In the open business economy many foreign companies are coming to India, at the same time Indian companies are also expanding globally. This expansion has made competition pervasive and it is no more confined to domestic business .
Role of Technology in Indian Marketing Scenario
The market place and economy in India is slowly undergoing transformation and there are a number of reasons which could be attributed to these reasons. One of the reasons for the changes in the Indian Market Scenario is Globalisation i.e. the explosive growth of global trade and international competition. The companies will have to compete with products that are made by international players and that are marketed in India. To name a few Japanese and Korean brands like Toyota, Panasonic, Honda, Samsung, LG and Sony.
The other reason for the changes in the Indian Market Scenario is the invent of technology. Globalisation and technology are the two powerful forces that influence business and hence marketing. These forces not only influence business but there is a strong interaction between them as well. The internet enables global marketing , as web-based marketing, which gives customers a wider choice and the ability to experience global exposure. Thus making the customers move to highest quality and the most accepted world standard products. So to survive and grow in a competitive global environment, the companies need to benchmark themselves by being in line with the technology and by understanding the specific needs of global customers.
Global Marketing by Indian Firms
Indian firms have undergone a drastic shift with fundamental and irreversible changes in the economy, government policies and in the mindset of Indians in general. The recent acquisition of Corus by Tata has signaled that some of them are looking beyond the national market and seeing their future as multi-nationals, competing for space in the global economy with the present occupants (Nitin Desai, 2006). The volume of overseas acquisitions by Indian companies has grown from around $2 billion in 2004 to $4.5 billion in 2005 and may reach over $10 billion in 2006. Videocon, Bharat Forge, Ranbaxy and other pharma companies, the IT majors and, of course, ONGC are some of the others who have been active.
Indian companies like Tata Motors, the makers of the Indica, and few other companies like Larsen & Toubro, Bharat Forge, Ranbaxy Laboratories, Indian Oil, Moser Baer, and Mahindra & Mahindra are rising to the new challenge of globalisation by making an overseas acquisition and entering a new market. The companies choose to go global for many reasons. Perhaps one reason could be the organic growth of the company, by setting up sales and service facilities, manufacturing plants, and R&D centres abroad. , the other reasons could be satisfaction of companys ambition to expand their business. When Mr. Dhoot of Videocon was asked this question after the preliminary moves to acquire Daewoo Electronics, he replied that he wanted to grow five-fold in size in five years and he could not do that even if his company expanded at twice the GDP growth rate within India.
In the long run, survival in a global market depends on building a strong brand equity or a cost or technical advantage that allows a company to capture, say, 25 per cent or more of a global market. Global marketing requires a deliberate brand- building exercise by Indian companies (Jayalakshmi Srikumar, 2006). Competitive advantage in Global Environment
Today the companies started realizing the advantage in globalizing and also have a high pressure to globalise aggressively in the International market. There are many Indian companies who were successful adopting this as a strategy. For example Sundaram fasteners compete in the global market for niche auto components like radiator caps. A measure of its global competitiveness is the fact that it won the general motors supplier of the year award for five consecutive years. Similarly, Bharat Forge, the second largest forging company in the world, competes by being a global supplier of specialized engine and chassis components for trucks and passenger cars. One out of every two trucks in the US uses front axles made at Bharat Forge Company at India.
Moreover the firms focusing on a global market segment can often effectively utilize the same capabilities and skills to target that segment throughout the world. For example, the success of Hilton and Sheraton hotels in targeting the growing market for international business is their extensive network of hotels worldwide which offer a consistent and reliable standard of service and comfort.
In the global expansion, a firm can have relative advantage when specific region is targeted. Hence, a firm with very weak competitive advantage at domestic market may still have configural advantage in the foreign market. This is more applicable for firms moving their marketing operations from developed countries to less developing countries (George Yip, 2005). This is because firms selling down to less developed economies find it relatively east to have a good competitive advantage in the entered market
Companies like Reliance in petroleum ; Wipro , Infosys and Tata sons in IT ; Ranbaxy and Dr. Reddys in pharmaceuticals ;and National Aluminum in metals prove that Indian companies are not only going global but also globally competitive
Building a competitive advantage in the global market depends on cost leadership or differentiating the product / service offerings (Porter 1980). Each type of advantage can be developed in relation to a broad based market or a focused target segment. A firms competitive position in world markets depends in part on the geographic scope of its operations i.e. The number of country markets or geographic regions in which the firm is involved.
Today any firm which has the ability to view the entire world as the market place of the organisation not depending on the specific markets or regions can gain sustainability through wider access to markets, consumers and greater variety of goods and services. Gaining competitive advantage in global market depends on the geographic scope and diversity of the firms operations and their inter linkage with other firms, as well as the extent of market integration and interdependence. Market openness associated with globalization has increased the speed, frequency and magnitude of access to worldwide markets, including all tangible and intangible aspects of commerce, by a new and more diverse set of competitors.
Foreign companies Investment in India
The Indian business atmosphere is very much investor- friendly compared with the International trading environment. It is also one of the biggest consumer markets and that is precisely the reason why India has attracted several MNCs. These large Multi National Companies have realized that to succeed in the Indian market-place they need to hire Indian representative who are much more aware of the Indian economic, political, legal and social realities. In the Indian Marketing Scenario, it is the MADE FOR INDIA marketing strategies that work In the Indian Marketing Scenario, the market success goes to those companies that are best matched to the current environmental imperatives. Those companies that can deliver what the people want and can delight the Indian customers are the market leaders. Today the companies are operating in such a marketplace where survival of the fittest is the prime objective. In order to win, the companies are coming out with various new and evolving strategies because the Indian market is also changing very fast. It is to capture the Indian market, that the Indian and the Multi National Companies are using all of their resources. The Indian market is no longer a sellers market. The winner is the one who provides value for money. A large number of companies have huge idle capacities, as they have wrongly calculated the market size and installed huge capacities. This has further contributed to converting the Indian market into a buyers market. Conclusion
Overall Gaining a competitive advantage in the international market entails a number of aspects. First of all, the assets and resources should be confined to provide the firm with a strong market presence in key markets worldwide. In addition to that, the firm should have flexibility to adjust to the changing macroeconomic conditions. The market and competitive conditions also enables the firm to act quickly in launching new products or responding to competitor moves. Thus companies from India and other emerging economies face many challenges when they expand their business globally. But there are many strategies the firms can use to take advantage in the global market.
If international market expansion becomes a key priority for a firm, formulating a strategy should be meticulously planned to operate on a global scale i.e. broader range of markets. Now, the Indian firms will loose out its economic advantages if it stays at home. Because, "the World is your market place".
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