Medilife: Report on Business Expansion in Globalized Environment

This report examines the expansion of Medilife, an online medical service provider, within the context of globalization. It explores the potential benefits, such as market diversification, increased market share, and customer base development, along with the challenges, including price fluctuations, cultu...Read More

Running head: Expansion of Medilife 1
Management and Business context
Expansion of Medilife

Expansion of Medilife2
Contents
Introduction......................................................................................................................................3
Contextual factor- Globalization.....................................................................................................4
Potential benefits of globalization on Medilife...............................................................................5
Potential challenges of globalization on Medilife...........................................................................7
Recommendations............................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The expansion of business can bring the various opportunities such as favourable financing
opportunities and new personnel. Globalization as the contextual factor has been chosen for
expanding the new start up venture. Globalization refer as a concept in which progress of a
region can take place in quick manner because it has the ability to communicate in easy way with
others all over the world for the purpose of conducting business internationally. The report will
reflect the expansion of new start up by considering the conceptual factor. Medilife has started as
a new business start up, which is able to provide the online medical facility to the customers. It
provides the online portal where the customer has access to search out the hospital from the
lower range to higher range in Australia. Customer can book the appointment from doctors after
analyzing the hospital on the portal without going anywhere. To expand the business globally,
the role of globalization is vital. The report will reflect the potential benefits and the challenges
of this contextual factor on the business. With the help of this contextual factor, the company can
expand its business globally which will be beneficial for the company in the context of
increasing the market share.

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Contextual factor- Globalization
Globalization is considered as the process of integration and interaction among the people,
government and the companies of different countries. There are four dimensions of globalization
which involves the expansion of activities of social, cultural and economic across regions and
political frontiers. The second dimension of it suggests the amplification of interconnectedness
such as culture finance, trade and investment. The developing strength and importance of global
interrelations can be linked with the process and interaction of global; it enhances the
opportunity of the communication. The last dimension describes that due to increase strength,
importance and velocity of the global connections, the boundaries between global affairs and
domestic issues have developed (Murthy, 2011).

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Potential benefits of globalization on Medilife
Business expansion and market diversification
Medilife is the new business and it can be expanded globally with the help of globalization.
However, Medilife is in Australia and provide medical facility to the customers of this country
via internet facility. The benefit of globalization of Medilife is that it make good bonding with
foreign people and facilitates to increase the business and employment. Diversification can be
attained by involving into new markets with different pricing strategies. It will be helpful for
making changes in the products as per the requirement of the customers.
Increase the market share
The market share of the company can be increased with the help of contextual factor that is
globalization. Due to expansion of business, the sales of the company will certainly increase. The
market share of Medilife can be increased by strengthening customer relations, innovation,
acquiring competitors and smart hiring practices. The role of market share is vital in the
companies which can utilize to critic the importance of any possible revenue developing efforts
such as CRM programs, marketing campaigns and branding initiatives (Piscitello&Sgobbi,
2004).
Customer base development
Globalization has developed the ability to buy life changing goods for consumers. The flexibility
has been provided by globalization of various consumption alternatives at affordable rate. The
amendments can take place in the societies and cultures across the world due to globalization. A
beneficial aspect of globalization is the enhancement in the goods and services available to the

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customers and decrease in the price (Dunning, 2014). There are number of companies that
haveexpanded its business globally such as McDonalds Restaurant that has opened in 1973 and
now it has more than 30,000 restaurants globally. The number of customers is increased in
Medilife due to globalization. The trust of customer will enhance on the company due to
expansion of the business. Customer would prefer Medilife to find out the medical services in all
over the world and can fix the appointments with doctor by analyzing the rate and the availability
of the services (Prasad, Rogoff, Wei &Kose, 2005).
Huge untapped market to operate
However, the strong competitors of Medilife are not available in online medical services that
prevent it from major competition with competitors. Globalization is able to provide the
opportunity to new business of huge untapped market to operate. It would be great opportunity
for the new business to reach at different location for business along with that it will bring new
changes in the country (Clarke, 2013). New entrants will be threat for the company but Medilife
can become the symbol of success of it expands its business globally and new entrants can learn
from Medilife.

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Potential challenges of globalization on Medilife
Fluctuation in prices
The major challenge is fluctuation in prices due to globalization. Medilife has to set up the price
strategies because competition has increased day by day and developed countries are forced to
lower their rates for their products. The company has provided the facility of medical to the
customers via internet but before putting any relevant information about the location and the
hospitals, company need to analyze the entire environment of the location where it want to
develop its business. The lower rate of services can bring the adverse situation for the company
and reduce the ability to sustain social welfare in their countries (Wiersema& Bowen, 2008).
Diversity in culture
The culture, languages and trends of each country is different and expansion of business in new
country can bring the challenge for the company because company need to give option on
different languages over the portal so that the local citizens can understand the description about
the hospitals across the world. However, it would be great opportunity for the business to
provide the facility of medical to the customers who are not aware about the treatment of worst
diseases but diversity can be the reason of challenge for the company (Homann,
Koslowski&Luetge, 2007).
Political threat
The scenario of political of different countries is not stable and company has to face number of
challenges due to different policies of countries. The variations in policies are the challenge of
globalization on the business of Medilife. Conversely, due to globalization employment increase

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in all over the world but the fact is that outsourcing takes away number of jobs and skilled people
from one country to another, leaving many without opportunities (Jianzhong, 2008). There are
various barriers about free trade such as 161 countries have value added taxes (VAT) on imports
which has high rate (Ferraro &Briody, 2017).
Technological glitch
Medilife is based on the technology which is the key source of competitiveness in the online
service. Technology has changed rapidly and unawareness about latest technology may bring the
challenges for the business to adhere (Kohut & Wike, 2008). Up gradations are done in the
technology on frequent basis which is vital to offer updated services to the consumers. Along
with that there are number of developing countries in which people do not have sufficient
knowledge about how to access on the portal to find out the medical services (Lee &Vivarelli,
2006).
Legal risk
Legal regulations are different of each country and the changes in the legal and political scenario
may amend the approach and legislation of the government. There are some agreements such as
NAFTA and the South Korean korus trade agreement which have been great impact on the
multinational corporations but due to this employment of unites states are eliminated. Medilife
can face the number of challenges due to emergence of lawsuits (Globalization, (e.d.).
Recommendations
It has been recommended that Medilife should explore the different market globally before
expanding the business only basis on earning profits. As it has been discussed that there are

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various developing countries where people are not aware about how to operate portal in such
case company should implement the simple process of inserting the mobile number so that the
executives of company can reach them by making calls on their numbers. To prevent from legal,
market and economic risk, company should analyze the conditions of the country by putting
itself as the business because company cannot prevent to face the challenges due to globalization
but various strategies and policies can be implemented by the company to make it more
impartial.

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Conclusion
In the limelight of above discussion, it has been concluded that globalization is the process that
bring so many countries at one place and enhance the employment across the world. The
discussion has been made on Medilife to expand its business globally. The report has been
reflected the potential benefits and the challenges of this contextual factor on the business.
Globalization can bring the changes in the business and the market share of the Company can be
increased, on the other hand, company can face major challenges such as legal risk, market risk
and environment risk due to globalization.

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References
Clarke, T. (2013). The advance of the MOOCs (massive open online courses) The impending
globalisation of business education?. Education+ Training, 55(4/5), 403-413.
Dunning, J. H. (2014). The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
Ferraro, G. P., &Briody, E. K. (2017). The cultural dimension of global business. London:
Taylor & Francis.
Globalization, (e.d.).Global Business Environment.Retrieved on 10th January, from:
http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/
0273752634.pdf.
Homann, K., Koslowski, P., &Luetge, C. (2007). Globalisation and business ethics.Ashgate
Publishing, Ltd..
Jianzhong, Z. (2008). Strategy of Engineering Education Reform in the Era of Economic
Globalization [J]. Research in Higher Education of Engineering, 1, 007.
Kohut, A., & Wike, R. (2008). PEW PRESENTS... Assessing Globalization: Benefits and
Drawbacks of Trade and Integration. Harvard International Review, 70-74.
Lee, E., &Vivarelli, M. (2006).The social impact of globalization in the developing
countries. International Labour Review, 145(3), 167-184.

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Murthy, G. (2011). Globalisation of Business.Retrieved on 10th January, from:
http://dspace.vpmthane.org:8080/jspui/bitstream/123456789/1506/1/84%20Globalisation
%20of%20Business.pdf.
Piscitello, L., &Sgobbi, F. (2004).Globalisation, e-business and SMEs: evidence from the Italian
district of Prato. Small Business Economics, 22(5), 333-347.
Prasad, E., Rogoff, K., Wei, S. J., &Kose, M. A. (2005). Effects of financial globalization on
developing countries: some empirical evidence. In India’s and China’s Recent
Experience with Reform and Growth (pp. 201-228). Palgrave Macmillan UK.
Wiersema, M. F., & Bowen, H. P. (2008). Corporate diversification: The impact of foreign
competition, industry globalization, and product diversification. Strategic Management
Journal, 29(2), 115-132.