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Local companies that only activate domestically were also forced to change their behavior by foreign companies that attacked their market with innovative strategies.
However, a global strategy does not necessarily imply a general, unique strategy that would be able to address all kinds of markets. Practice has proven that cultural differences should be reflected in the implemented marketing strategies. Large companies develop and implement a certain strategy for the domestic market, and other strategies that suit each foreign market that the company in case addresses.
Global integration pressures usually refer to economic and technological factors that influence the activity of competitors on international markets. Such pressures take the form of: global competition, global value activities, technological dynamism, global costs, and scope economies (Venaik, 1999).
The action of global integration pressures on marketing strategies is a quite subtle one. For example, tough global competition combined with rapid technological innovations, and with product and process developments lead to creating an unstable environment.
This further leads to increased managerial uncertainty. This managerial uncertainty that increases in unstable environments is generated by the increased need for information required in the decision making process. The more unstable the environment is, the higher the risks are. Risk conditions require additional information.
In other words, the global integration pressures detailed above tend to increase information flow in large companies. Information flow is thus more efficient. The efficiency of the information flow determines the efficiency of the decision taking process.
In addition to this, it has been observed that a very high level of innovation and development characterizes industries that are able to create a framework for impressive opportunities regarding technologies. As a consequence, organizational innovation is determined by such a framework that allows for frequent product, service, and process innovation. Therefore, companies are practically forced to innovate in all areas f the business in order to maintain or to improve their position on the market compared to that of its competitors that are forced to do the same.
Global scale and scope economies have a direct effect on costs, by reducing them. This way, the financial performance…[continue]
"The Impact Of Global Integration Pressures And Local Responsiveness Pressures On Global Marketing Strategies Focus On Coca Cola And Pepsi Cola" (2009, March 29) Retrieved July 25, 2014, from http://www.paperdue.com/essay/The-impact-of-global-23520
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"The Impact Of Global Integration Pressures And Local Responsiveness Pressures On Global Marketing Strategies Focus On Coca Cola And Pepsi Cola", 29 March 2009, Accessed.25 July. 2014, http://www.paperdue.com/essay/The-impact-of-global-23520