Globalization and competitive advantage
. According to Chen and Green
(2012), challenges business owners encounter include competitors globally, an aging
consumer market, and less income from households affect brand equity. Globalization
has deterritorialized the links between people, social, and cultural practices from their
territories such as town, neighborhood, state, or country (Kale & De, 2013). To compete
with leading brands and incorporate product differentiation, some retailers invest in
premium store brands (Levy & Gendel-Guterman, 2012). Fadaei (2016) indicated that
industries and businesses globally utilize the Internet as a center for online sales.
Globalization facts have revealed the hidden potential for the international
hospitality industry impact on the economy (Bharwani & Butt, 2012). Hence, Canada is
overwhelmed with challenges of decreased marketing budget that will hinder Canada's
efforts to take advantage of a growing world tourism market (Jayawardena, Horsfield,
Gellatly, Willie, & Sovani, 2013). Nevertheless, Canada will continuously experience
disparities that will force the country out of the tourism marketplace due to decreased
funding and the overshadowing of competitors (Jayawardena et al., 2013). Certainly,
hospitality firms need to consider investing technology for efficiency as new technologies
create opportunities for positive word of mouth recommendations and other positive
experiences from consumers (Jauhari, 2012). The quest for identity in the process of
deterritorialization is significant in consumer behavior because contemporary
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consumption is an important vehicle with which to shape one’s self-image and define
one’s identity (Kale & De, 2013).
In fact, a key business behavior of enterprises is marketing, and the basic function
is to attract and retain consumers to stay competitive in conditions of globalization and
intensive competition (Borisavljevic, 2013). One of the most important aspects in
offering a product is product design creativity and attractiveness to attract potential
buyers (Abdullah, Hamali, & Abdullah, 2015). For instance, Ed State, Nigeria continue to
experience challenges due to the lack of improved sports marketing which has created
inefficiency in sports management and an inability to attract sports sponsorship (Awoma
& Boye, 2013).
Competition is steadily getting tougher and more global because competitors
imitate products before and after launching of the product (Ersun & Karabulut, 2013).
Shaqiri (2013) identified the following trends regarding global production strategy: (a)
reduction of cost prices while increasing quality; and (b) allocation of production in
sectors where the country has a comparative advantage while reducing production in
other sectors. For example, some senior managers employ outsourcing, which is a
strategy that has affected the world economy globally by increasing sales and production
while removing costs from operations to maximize overall profits for the organization
(Shaqiri, 2013). Ersun and Karabulut (2013) indicated that to sustain an organization's
competitive positions, global enterprises should redesign their management and
marketing strategies because of shorter stages in the product life cycle.
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