Localize your product to globalize your business

Localize your product to globalize your business LOCALIZE YOUR PRODUCT TO GLOBALIZE YOUR BUSINESS. OBJECTIVES:- Analyze how should be the Structure and Capacity of Firm to explore a localized product to global market Evaluate the Demand of the product in the particular country where the firm wants to explore. To Know the benefits from the global business that placing the placing the actual importance of a product. To Understand the Local and Global legal terms and conditions to access or for trading a product to global market. Analyzing the Local and global Market competitors and upcoming problems with similar products in Price, Reliability and quality. Critically analyze the Barriers to growth for small firms. 3. Context :- The main purpose to choose this topic because, as the Author is from a Business background family, owning a group called RGS GROUP FIRMS which deals with Manufacturing Micro nutrient and Fertilizers products with fully fledged and localized in the Indian Market, Author main aim is to Explore the Business which is presently in INDIA to other countries with help of there Localized products to global Market for which author is taking the help of this Dissertation. The intention of doing this study is to grab the information is how to launch a localized product outside the country and Author personal interest is to improve his business status to globe with the help of this research on above topic. Literature Review:- The literature review is focused in areas related to innovative product development for sustainable competitive advantage. The essentials for the product development would involve market segmentation, innovation, capacity of the firm, need for skill (Knowledge) and research and development to globalize a product. The literature review aims to conclude with a framework for business strategy intending to enhance product development. Some people are given a survey to complete to gauge their reaction on globalization of a localized product to other countries, who have placed different importance in there concepts. Which are as below. According to KENECHI OHMAE in his book THE NEXT GLOBAL STAGE published in 2005 he said that Effective communication always depend on the non existence of borders. It was one thing when communication was predominantly physical. If a person wanted to go from A to B or send something there, be it is a letter or product , the inter force of gravity often slowed the process down. Slowness of movement was futured added to by border checkpoints, the need for visas and passport control not to mention custom exercise inspection. People viewed these as obstacles and deterrents. Critical points in the process of Expansion of a Firm:- According to EDITH PENROSE in his book THE THEORY OF THE GROWTH OF THE FIRM, when a firm is relatively small the division of managerial labor will not be extensively and the most important decision are sometimes made by only one man. As the firm grows it reaches a point where a change in its managerial structure must take place because of the necessity, if growth is to continue of subdividing the managerial tasks and especially of decentralizing managerial decision making. The Small Firm and international Business Strategy decisions:- Market Entry:- Dawes (1995) acknowledges that for small business moving from the confines of a domestic market to market across national boundaries which may comprise one or more international markets can be a daunting prospect. He acknowledges that there are a number of reasons why companies do decide to internationalize their operations and the reasons are identified. Johnson and wiedersheim -Paul (1975), Bikey and Teaser (1977), Cavusgil (1980) and Czinkota (1982) all put forward export development models, discussed. Which they see as the export behaviour theories of small firms PRODUCT:-. The architecture of the product is defined not only by the decomposition of the complete product into elemental components, but also by the interaction between these components. The interactions, System architecture design principles suggest ways to plan architectures with minimal interactions across sub-systems, maximizing architecture interactions has been accomplished using matrix—based methods. Analysis such of such patterns may be used to suggest clusters forming effective product modules. (Alexander 1964). EXPORTING:- In its basic form exporting can be defined as selling goods or services from one country to another. There is distinction with in the exporting approach between an indirect handling of product and services involving export houses and joint marketing methods and direct handling of product and services agents and distributors. Indirect exporting of a product involves the use of intermediaries, usually in the firms own country and in response to requests for the firms product or services from abroad. For small firm with little experience if international business, this usually the beginning of a firms move to direct exporting. The handling of the export order may then be carried out by export houses whose business is handling or financing or international trade (Hibbert 1989). The houses provide a comprehensive export service which covers principal involvement in the export activities namely arranging the sale of the product or services and dealing with paperwork and administration. ENTRY ANALYSIS:- If the small firm is to approach exporting in an entry strategy basis the small firm will need to determine sales projections with the detailed costing information. The costing will need to cover existing operation in the business that will be involved in an exporting programme. The costing may well involve sensitivity analysis to determine effect on sale trends etc given specific scenarios Eg Currency fluctuations, (Chuck C Y Kwok 1987). MAKING GLOBAL PRODUCT:- Robin.K and Beebe.N in order to make products that appeal to customers in different parts of the world many companies are finding that they need to develop a deep under standing of consumers in the different parts of the world. (Robin.K and Beebe. N). GOING GLOBAL TO ADD CAPACITY TO A FIRM:- Perhaps the most common reason companies â€Å"go global† with product development to expand their capacity in other words , to add skill , Knowledge, expertise and the infrastructure that can help them develop more and better products. The following below are some of the Globalization strategy to shape the firm. Finding more skilled hands to do the routine work. Finding resources that can extend and complement your product development work. Increasing your access to special competencies. Acquiring special skills that out or in source vendors may do better than you. DECIDING WHERE TO GO WHEN YOU GO GLOBAL:- Most firms began to globalize their product development activities in order to exploit low cost suppliers or global markets. They stick with the globalization to reap the benefits of additional skills and capacities. (Robin.K and Beebe. N). Knowledge of the country and its international context:- (Thinking Globally and Managing globally) The implementation of localised management is dependent upon effective local knowledge. National geography and history, local political and economic management, technological development and socio cultural features. The international context within which the country may be placed; for instance: Whether the country is categorized as traditional or Third World; developing, or a lesser Developed Country (LDC), or industrialized. (Tony morden, (European Business Review). Standardizations and Product Category:- (Brand Globally but Advertise locally) Several of the reported empirical studies have noted that brand and advertising Standardization is a function of product category. Still and Hill (1984) found brand standardization in 76 percent of pharmaceutical products, but in only 60 percent of the food products. Boddewyn and Hansen (1976) found standardized branding practice to be highest for consumer durables. (Dennis M. Sandler and David Shani). Developing Local Product to a Global Market:- A firm can take advantage of large scale production and distribution and a global reputation yet successfully accommodate local market idiosyncrasies. The key to an effective marketing strategy is to understand and capitalize upon unique market characteristics of different cultures and sub-cultures. Successful development of international product and marketing strategies lies in being global and acting local. The proponents of global marketing strategy have displayed a strong insensitively to largely varying local needs, wants and behaviors. The implementation of being global and acting local begins with understanding consumer behaviors and at the macro level, international markets. (James Wills, A. Coskun Samll and Laurence Jacobs). Research in international new product development Current understanding and future imperatives:- This has been an observable trend that has posed both difficulties and opportunities for host of the business in both product manufacturing and service sectors. In the context of innovation and more specially, localized product development , organizations have had a grapple with more demanding regional and global customers and rising a level of international competition , suppliers and global customers and rising the level of international competition, suppliers and resource markets , Realistically firms that seek to excel cannot ignore these challenges. Instead they can ensure survival by capitalizing on internationalization opportunities. In order to create value for international or global customers need to formulate and implement appropriate product development strategies and process to meet the needs and demands of international markets. There is growing concern that strategies, structures and processes for developing and commercializing new technologies for domestic market may not be entirely suitable to meet the demands of the business serving international market.