The paper "Globalization and Business IT" is an outstanding example of a business essay. The forces of IT are making the integration of businesses across transnational boundaries possible. Information technology is among one of the ten major forces that led to the flattening of the world. When Netscape went public in September 1995 the world had reached a new age of connectivity. According to renowned economist John Maynard Keynes, globalization enables a resident in London to order an item from anywhere in the world from the comfort of his home. Notably, this ordering of items cannot take place without using Information Technology devices such as telephones or computers. Contrary to my earlier opinion that globalization can proceed at the same pace in each industry, the pace of globalization is greater in the retail industry.
Characterized by the ease in transfer of knowledge and insignificant economies of scale, Global retailers are spreading their operations all over the world. In my view, IT is one of the most profound factors that has assisted the likes of Tesco in quickly establish a dominant market presence in South-Asian countries. I think IT has facilitated the expansion of global retailers in a number of ways.
First, IT assists retailers to develop new store concepts by enabling the modeling of store environments. Secondly, IT is enabling the retailers to engage in online direct selling and help the retailers customize their product offering to fit their clientele. Through information technology services like home, deliveries can be offered by global retailers in the new markets they have entered. Information technology also enables the retailers to maintain a customer relationship management system which is able to rise to the challenge of handling customers from diverse cultures.
Previously, I underestimated the impact of IT as an enabling factor in the global expansion of retailers. Through, this IT-enabled process Tesco is generating sales of over 1 billion pounds in its Thailand operations. Tesco plans to open 200 new stores in Thailand as a result of the phenomenal success it has been able to achieve through information technology.