Global competition

Definition

Global competition refers to the rivalry between companies and organizations across the world, striving to capture market share and outperform each other in various regions. This type of competition is influenced by factors like globalization, technological advancements, and varying economic conditions, which allow businesses to operate internationally and compete on a global scale. As companies expand their operations beyond domestic borders, they face diverse challenges and opportunities that shape their strategies and practices.

5 Must Know Facts For Your Next Test

1. Global competition has intensified due to advancements in technology, making it easier for businesses to reach customers around the world.
2. Companies often adopt different strategies to compete globally, including price reduction, innovation, and enhancing customer service.
3. Emerging markets play a significant role in global competition as they present new opportunities for growth and expansion for established companies.
4. Regulatory environments vary across countries, impacting how companies can operate and compete internationally.
5. Sustainability and ethical practices are increasingly becoming essential factors in global competition as consumers demand responsible business behavior.

Review Questions

• How does globalization influence global competition among businesses?
  • Globalization significantly influences global competition by allowing companies to enter new markets and access a broader customer base. This expansion creates a more competitive landscape where firms from different countries vie for market share. As businesses adapt their strategies to cater to diverse consumer preferences and local regulations, they must continuously innovate and improve their offerings to stay ahead of competitors.
• What are some key strategies that companies employ to succeed in a globally competitive market?
  • To succeed in a globally competitive market, companies often focus on strategies such as differentiating their products through innovation and quality, implementing cost leadership to offer competitive pricing, and enhancing customer experiences through tailored services. Additionally, leveraging technology for efficient supply chain management and marketing also helps firms gain an edge over competitors while navigating the complexities of various international markets.
• Evaluate the impact of emerging markets on global competition and corporate strategies in the 21st century.
  • Emerging markets have transformed global competition by presenting significant growth opportunities for multinational corporations. Companies are increasingly tailoring their strategies to meet the unique demands of these markets, often adapting their products or services to align with local preferences. This shift not only intensifies competition among established firms but also fosters innovation as businesses strive to differentiate themselves and capture market share in these rapidly developing economies.

Related terms

Globalization: The process by which businesses and other organizations develop international influence or operate on an international scale.

Market Share: The portion of a market controlled by a particular company or product, indicating its competitiveness in that market.

International Trade: The exchange of goods and services between countries, allowing for access to different markets and resources.