Application of Globalization

Running head: ANALYSIS OF ARTICLE
ANALYSIS OF ARTICLE
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1ANALYSIS OF ARTICLE
Article summary of “How Local Companies Keep Multinationals at Bay”:
If global business context from late 1970 is analysed, then it is identified that government in
almost every country has allowed multi-national companies to take advantage of their
economies to enhance their business (Bhattacharya & Michael, 2008). However, it was first
assumed that these multi-national companies through their superior technology and product
quality would easily replace local companies or make it difficult for local companies to enter
into this market. Along with technology and quality in product some other aspects that were
in favour of these companies to outperform local companies include huge financial
resources, popularity of brand and best talents for managing their business strategies
including best system for business management as well.
Globalization offers local companies to manage issues regarding technology, capital and
talents and all of these aspects offers global companies competitive advantage over their local
competitors. Although globalization offers local companies benefits to manage competition
in emerging markets, but according to these two articles, proper strategies need to be
considered for obtaining these benefits. Although local companies might outperform global
companies, but as provided in these articles, this is not easy (Bhattacharya & Michael, 2008).
However, for ensuing this, identification and application of proper strategies are required in
this context.
According to my analysis of globalization and emerging market, Although some local
companies in various countries were not capable of managing this competition, but some
companies have not only managed to ensure that competition from global companies has
little significance on their business process, but it also ensured a significant revenue from
their business as well. Some companies have even managed to offer a tough competition to
these large and multinational companies as well.

2ANALYSIS OF ARTICLE
Analysis of connection between two articles:
Another article which is considered in this context for analysing this topic is “Emerging
Giants Building World-Class Companies in Developing Countries” and it analyses strategies
for companies to ensure success in their business in emerging markets. It provides detailed
description regarding how companies need to compete in emerging market in local and global
context as well.
What makes these two article correlated is that these two articles analyses how companies
might ensure success in an emerging market while competing with global companies as well.
Although these articles have considered different approach in analysing this topic but it is
important to identify that these two articles has mentioned that globalization offers various
opportunities and local companies should identify these opportunities. However, according to
these articles, it is not enough to identify these opportunities, but local companies need to
apply benefits of globalization into their business as well. However, as identified in research
and provided in these articles, global companies even after so many favourable conditions in
global market were not that successful in replacing local companies (Khanna & Palepu,
2004). Therefore, companies need to consider this for ensuring that application of
globalization is effective and efficient as well.
If these articles are analysed in detail, then it is identified that although globalization helps
large competition to establish their business in various countries, but they need to consider
competition from local companies as a successful local company might throw a multinational
company out of emerging market as well.

3ANALYSIS OF ARTICLE
References:
Bhattacharya, A. K., & Michael, D. C. (2008). How local companies keep multinationals at
bay. Harvard Business Review, 86(3), 20-33.
Khanna, T., & Palepu, K. (2004). Emerging giants: building world class companies from
emerging markets. Harvard Business School, 3-25.