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Key Factors That Drives Global Commerce

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Added on  2020-12-09

Key Factors That Drives Global Commerce

   Added on 2020-12-09

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Key factors that drives global commerce and tradeBusiness organisation nowadays are expanding theirbusiness to the regions outside their territory for thisthey have taken the help of globalisation techniques.Globalisation in business environment is defined as aprocess of interaction among the people of differentcountry so as to provide them the desired products. Thisenvironment can be defined into external environmentand internal environment. The external environmentalfactors include PESTEL factors. This report is based onthe analysis of the key factors that defines globalisation,along with impact of the strategic complexitiesassociated with operating in the global environment, forthis Tommy Hilfiger has been taken for the study.Market factor: As nowadays consumers are educated andthe lifestyle is changing the way consumers thinks so themarket factor should be taken into consideration whileplanning to expand their business in the global market.The proper study of the market is to done considering themarket determinant. The approach should start bypicking the regions and then the countries within theregions. The customer taste and the preference should beconsidered while planning to chose the region. Ascustomers are the base for any company to be successful.Tommy Hilfiger should also consider the market factorsand the regions in which they should expand theirbusiness before entering the market.Global Business environment describes the reality of thenature of the business environment in the industry. It isgrowing in the positive way which is shaping the dynamics ofglobal trade. As the business is growing globally there aresome factors which are to be considered while taking thedecision of globalisation. As the company is expanding thebusiness globally therefore the needs and demand of thecustomer, the cost of the product and the competitors to thebusiness should be analysed. Tommy Hilfiger which wasfounded in the year 1985 deals in the fashion, apparel andperfume industry and has a huge market base globally. As thecompany is the global player so the key factors that derivestheir trade globally are cost, market, environment andcompetition. The analysis of these factors are done below:Cost factor: Investment of the company being maximized isthe motivation key for many global companies. The goal forany company is to get the most profit from the investmentdone. The cost at which the company is producing theirproduct is the main aspect for any company to be successful.As in the case of Tommy Hilfiger the company is expandingtheir business on the global context so the factors that willmake their cost of the product minimum will be taken. Themanagement of the company should analyse that whichmarket region is providing them maximum profit in case ofcost proposition.IntroductionGlobal Business Environment
Key Factors That Drives Global Commerce_1

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