The paper "Global Marketing of Vermont Teddy Bear" is a perfect example of a case study on marketing. In a bid to enhance the market shares, reach the global consumer, and increase the profit margins and in order to enhance their sustainable competitive advantage, contemporary organizations are internationalizing their business across national boundaries as noted by IBM (2006, p. 4). Among variables internationalized include knowledge, technology, products, resources, services, ideas and people. At a national level, internationalization permits economies to capitalize on national expertise in trade to deliver products and services in the global market and helps improve the diversity of products and services accessible in local markets and thus, expose local customers to new knowledge, ideas and lifestyles which in the long run influence the national cultures and impact on political, social and economic institutions. For a company such as Vermont Teddy Bear, an American founded, internet-based and a privately owned company in the gift delivery service industry, internationalization of its services would mean increased revenues, tapping into new growth market and accessing greater business opportunities, exposure to new ideas, skills, technologies and innovations, enhanced market shares and improved competitiveness (Hollensen, 2007, p. 34).
Be it as it may, internationalization is easier said than done because the process brings with it challenges and complexities of doing business globally. This means, there are varied difficulties that Vermont Teddy Bear would encounter if it were to internationalize its business. Among these difficulties include Political uncertainties and Regulatory barriers The internationalization of business is coupled with diverse challenges that require effective business strategies to overcome. For Vermont Teddy Bear and the entire toy industry, political challenges and regulatory barriers form part of the difficulty of the internationalization process.
This is because different international markets have different political structures and systems that are different from what the United States political system is as echoed by Anderson (2011). For example, markets such as Africa, Asia, and Europe are governed by different political systems which include single-party governments or dictatorial administrations and democratic governments. These political systems influence how business is run on their countries which may be unfavorable for a foreign company such as Vermont Teddy Bear. This may range from non-conducive business terms and conditions, long legal procedures, strict regulatory frameworks and policies that would make it hard for the company to start the business and if it does, making it hard for it to operate independently, effectively and efficiently to meet the needs and expectations of its customers or the new market.