The paper "Opportunities and Threats Created by Globalization - Samsung Electronics" is a perfect example of a business case study. The term “ globalization” is an important phenomenon, whose impact has been felt far and wide. The greatest impact of globalization has particularly been felt in the business environment, where it has acquired an emotive force (Osibanjo et al. 2014, p. 1). Today, there is an ongoing debate among policymakers, business managers and industry analysts concerning the benefits and threats associated with globalization. Even as the debate continues to rage, there has been a consensus in the literature that globalization presents both opportunities and threats that decision-makers, especially managers of multinational enterprises need to understand as they seek to take advantage of globalization.
South Korea’ s Samsung is one of the fastest-growing technology companies from an emerging market that has taken advantage of the opportunities presented by globalization to explore markets beyond its domestic market (Samsung 2017). This essay analyzes the opportunities and threats that globalization creates to decision-makers with reference to Samsung Electronics. In developing the essay, the paper begins by defining the concept of globalization and proceeds to analyze the opportunities and threats that globalization has created for Samsung Electronics.
The third part of the essay presents the lessons that multinational business managers can learn from the interplay between home and host country differences in achieving success. Concept of Globalization The concept of globalization has many connotations and is defined differently depending on the field. The term globalization has been defined as the integration of the world economies mainly through financial flows and trade (Steger 2013, p. 4; Steger 2010, p. 6).
Boudreaux, D. J 2008, p. 2) defines the term globalization as the movement of people and knowledge (technology) across borders. Osibanjo et al. (2014, p. 1) define the term globalization as the integration of cultural and political matters. Although the term globalization means different things to different people and fields of study, the common denominator is that globalization broadly means integration of world economies, trade, finance, culture, politics, environment and people aided by technological developments. Opportunities Created by Globalization Multinational companies are arguably the greatest beneficiaries of globalization. Although the literature indicates that globalization sometimes impacts on multinational companies in a manner that managers of those companies might not like, there is an agreement that globalization has created numerous opportunities for multinational companies.
The first greatest opportunity that globalization has created for multinational companies are providing them with access to market opportunities. Steger (2010, p. 12) notes that globalization has provided multinational companies with access to markets that they would otherwise found difficult to access in the past. The integration of world economies and trade has resulted in the elimination of trade barriers and tariffs that made it difficult for companies to expand their businesses to foreign markets.
Because of globalization, there has been an increasing trend towards the formation of regional and national economic blocks and this has resulted in the elimination of past trade restrictions and tariffs while opening up the world for business and trade between nations and this has created an opportunity for multinational companies to expand their markets beyond their domestic market to foreign markets, where there are attractive opportunities. Samsung is an example of a company from an emerging market that has benefited a great deal from globalization that has enabled the company to have access to market opportunities in foreign nations.
Today, Samsung operates in more than 60 countries across the globe and the company continues to expand its market (Samsung, 2017). Few examples of these markets include the UK, China, the USA, Malaysia, and Nigeria, Brazil and India, just to name but a few. The company’ s financial reports indicate that most of Samsung’ s sales and profits are generated from its subsidiaries in foreign nations while its home country Korea generates only a small fraction of Samsung’ s revenue and profits and this underscores the extent to which globalization has benefited Samsung by enabling it access markets that it could otherwise not able or found difficult to access (Samsung 2015).
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