Globalization and its Impact on Business

Managing Across
Borders

MANAGEMENT 1
Globalization
Globalization is the process of integration and interaction among people, companies, and
government worldwide. Globalization provides opportunities to the companies to spread the
business at the global level. It has been seen that the globalization affects the business in both the
aspect such as positive and negative. The advantage of globalization is that the companies have
the opportunity of location flexibility. Location flexibility enhances the operational activity of
the company or the revenue (Triandafyllidou, 2018). It is a fact that the companies that operate
the business in a large area have the opportunity to provide the services to a huge number of
consumers and earns high revenue.
Some challenges faced by the organizations while operating the business at the international
level. The main challenges faced by companies in the high risk of competitors in a similar
industry. The risk among the competitors has been arising as the companies expand the business
at the global level. There are a lot of companies operates under a similar industry and also
provides similar services to consumers with attractive offers to attracts more or more consumers
towards the services. Acquisition and merge are the strategies that are implementing by the
companies to beat the competitors at the international level. As per these strategies two
companies have the opportunity to spread the business at the global level or grasp the large
market share. These strategies increasing the competition as these are included in the process of
globalization. As the competition is increasing, companies have a high risk of losing consumers
(Lane, 2016).
For example- Amazon and Walmart are the companies that provide a wide variety of good
consumers through an online website. Walmart merges with Flipkart by acquiring 77% of the
share of the company to beat Amazon (Economic Times, 2018).