Challenges in Global Market, Research Paper Example

Abstract

Launching a product in global market is the biggest effort now as it needs to be properly done for a large society with varying culture and ethnicity. Though technology has been of great use in global market for big and small firms it is not utilized to fullest extent in marketing. Most misconceived and misrepresented part is the legal and ethical concerns and this discourage companies from using technological advancement.

 Introduction

Global market provides with opportunities and challenges to consumers and companies. But it is at the same time difficult to develop and launch a new product in global market. Technological advancement has facilitated easy communication in a digital market place providing better assistance in production and marketing. With the advancement of technology and access to global market new issues both ethical and legal has also emerged. Companies do not dare to use the benefits of technology to fullest due to fear of intellectual rights. This paper tries to analyze the issues related to marketing during a new product launch in international market. It also analyses the benefits of technology and new ethical and legal issues related to global marketing of products.

Challenges in New Product Launches

One of the key issues faced by companies in global market is placement of a new product in right market. Even small companies like Turkcell are able to launch their products in global market. With advancement of technologies communication has become very easy and consumers want to be educated. Companies are to do careful market research before launching a product. It is also very expensive to launch a new product internationally. It is at this point that top management can come to help. Top management has a got a key role in development of a new product and also in its launch. It is for them to control new product development and its launch but without hampering the flexibility and freedom. This is done not to constrain the creativity inherent in a project and not to hinder the progress which is the key to knowledge creation and innovation.

If a company aims to launch its product in various countries it is important for them to understand the cultural diversities and economy of each country where it plans to launch. Various issues associated with product launch are related to technology, ethical and legal implications and global applications. This is because global market is saturated with these factors. All these components are to be taken care of and duly addressed before product launch for a successful market implementation and product launch. It is necessary for companies to consider and evaluate challenges and benefits and relevance of the product in a particular market (Boule, 2008).

Challenges: example number 1.

It is easy to launch a product like iPad in a country like Switzerland with a rich economy. At the same it will be difficult to launch the same product in a developing country like India. It will be even more difficult to launch it in a poor region like Calcutta in India. This is because every region in a country is different and a product might not sell in all regions of a country alike. Apple before launching iPad looked in to economic and demographic information of every market in world before launching new iPad. They found Times Square of New York City as the perfect market for iPad media campaign to find perfect audience (Affairs, 2009).

Challenges: example number 2.

Another example is of McDonalds, who make changes in their product line according to consumer needs. As part of this McDonalds do not serve foods that are avoided in certain market even if they are taboo foods. Sauces are also made according to taste of each country. It is on the basis of market research that they decide the products in a particular market. When they plan for a global product launch they try to provide ads in every possible language using models from a particular region to reflect their ethnicity.

Challenges: example number 3.

Launch of beauty products like perfumes. For this company usually coordinates with department stores and tours are arranged with super models or celebrities of that particular region. For example Avon used Reese Witherspoon for their campaign. One of the methods to launch a product for international audience is to use a celebrity who is renowned worldwide.

Technology and New Product Development

With technological advancement even small enterprises are able to access resources, provide new avenues for success in market and redefine marketing and advertising methods. There are several communication opportunities, a market place that is large and digital and improved production assistance in a movement that is progressive and promising. Consumer perspective is the most important factor in global market. With advanced technologies consumers have become aware of products and consideration of environment has become an important factor (Global trade: We need each other, 2008).

One of the most important aspects where technology assistance is benefited is in communication. With an email now it is possible to communicate in less than minute and even fast methods like texting and teleconferencing is available today. With the aid of web cast technology one can view a coworker’s presentation without being present physically at a place. Internal competition among technology groups that are existing leads to integration of new technology in next generation products (Taylor, 2010).

Technology: example number 1.

Technology has provided consumers with a digital market place. Consumer no more has to put any effort or has to put only little effort to know about a product. Any business is now digitally available online and Internet is used as a digital presentation media though Internet lacks any physical location. It is possible for consumers from China to find a product of their need at Texas by spending least time. With advanced communication distribution channels have also become global. Services have achieved global standards for establishing a global tie and this is so for mainstreaming practices as well. Competition has also increased. This is because even small companies are able to sell their services and products globally. For example Microsoft is facing challenge from a small company called Turkcell who is providing a mobile signature service enabling customer to access ATM machine using phone and without any bank card. They are providing the facility without any digital market place globally and is the first to provide this facility. They are confident to compete and is having a better technology and service than United States (Affairs, 2009).

Technology: example number 2.

With advanced technology it is able to reproduce information and access it for future use virtually in almost every business setting. It is not necessary to provide a presentation locally or as a hard copy recorded as it can be accessed on the desk of every client or worker whom we wish to. According to Boule (2008) with methods like text messages it is possible to increase productivity than with a face to face meeting. This is because with this method people are able to respond easily and there is no need to schedule a meeting. Decision making has also become quick with fast communication.

Technology: example number 3.

Technology also helps to create better solutions. Greener products are now in demand and with advanced technology companies are able to provide greener packaging and products. According to Guzman& De (2008) now companies are using water based adhesives and not solvents. Companies like UPS, Haas and Fed Ex. Rohm are developing adhesives that are earth friendly for packaging of foods. For this they have made collaboration with Italian manufactures and believe this to have great impact on packing of food. A company called Ciba is replacing wax from packaging to make recycling easier (Guzman & Doris, 2008).

Legal and Ethical Implications in New Product Development

Legal and ethical issues prevailing today have been revealed due to globalization and certain practices of big companies are found very serious and are questionable. One of them is the discrimination of wages. Top executives are paid in million during their period of employment and retirement while average workers are provided least payment or even unemployment. Greed and carelessness have become so evident and this is more prominent among wealthy firms. In most successful firms leaders are not ready to embrace innovative ideas, plan for market stability and share success. Noncooperation has great effect on trading ability and concerns of environment in global market. This has led to market downturn and this will have great impact on market success in future. Ethical issues have gained more prominence and this encompassed obligations that are misaligned along with greed of government authorities and automakers.

Ethical and legal issues have led to greed and market instability. In United States failing companies have been recently bailed out. This raised awareness of unethical and illegal practices that was prevailing over a long period of time leading to a financial disaster. It can be seen that there was no conscious planning or spending. This caused unbalance that has an effect on world market. Though it was known to leaders that hybrid vehicles and sustainable energy sources are necessary they ignored this knowledge (Sachs, 2009).

Legal and ethical implications: example number 1.

One of the most misinterpreted legal issues is that of intellectual rights. HIPAA law is so misunderstood that health care providers are not ready to use medical records for marketing. They do not dare to use facilities like email for communicating with patients fearing the provisions of HIPAA law. Thus the medical practitioners are concerned solely about legal factors and are not thinking about patients who wish to communicate with their physicians constantly about their health (Gray & Christiansen).

Legal and ethical implications: example number 2.

It was found that vehicles promoted by three big automakers were not fit to a market with environmental concerns at peak and this was known to them. It was this carelessness that led to a difficult transition in an economy overburdened by government spending and banking policies that are poor (Sachs, 2009). Yet another legal and ethical issue is related to intellectual property. Ideas are likely to transfer to a market causing a threat to labor and development in original market. Cost effective production will have to be reevaluated and improved. Earlier car manufacturing was a strong economic factor in United States and later with advanced technologies countries like Japan and Korea were able to establish themselves in this sector. They were also able to produce cars are reduced production and labor cost.

Legal and ethical implications: example number 3.

Bailout was approved by public but it was disapproved. It is also found that government is spending only 3 billion for energy development and research while Pentagon is spending that amount in a couple of days. As policies have begun its change it will be further difficult to execute solutions.

A production surge that is quickly developed is likely to create a market boom and this might not consider ethical and environmental concerns. Social issues like environmental concerns and poverty are likely to be highly effected by global market corporation (Global trade: We need each other, 2008). Countries like United States and Europe are exerting pressure on developing countries like China and India to limit their standards for protecting farmers producing just enough to get by. Farm subsidies and issues like this was the converse of Geneva International talks.

Conclusion

From the above discussion it is understood that companies face multiple issues while launching a product globally. Biggest threat is for marketing sector who is backed by modern technologies. Though technology has made marketing very easy in global market, it has also developed new issues like intellectual rights and other ethical and legal concerns. It is due to fear of these factors that most companies do not dare to rely on technology for the most successful and easiest marketing techniques.

References

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Boule, M. (2008). Changing the Way We Work. Chicago, IL: ALATechSource.

(2008). Global trade: We need each other. National Catholic Reporter.

Gray, D. M., & Christiansen, L. (n.d.). Marketing to Patients: A Legal and Ethical Perspective. Journal of Academic and Business Ethics , 69 – 78.

Guzman, & Doris, D. (2008). Green way packers. ICIS Chemical Business , 20.

Richtne´r, A., & A°hlstro¨m, P. (2010). Top management control and knowledge creation in new product development. International Journal of Operations & Production Management , 1006-1031.

Sachs, J. D. (2009, January 20). Transforming the Auto Industry. Scientific American , p. 33.

Taylor, A. (2010). The Next Generation: Technology Adoption and Integration Through Internal Competition in New Product Development. Organization Science , 23 – 41.