Services Marketing

Globalization refers to the free movement of goods, services, people, capital and technology across the globe. Globalization has been given major thrust by agreements like GATS signed by several countries in the world. The major factors that drive globalization are changes in social factors, technology, political and legal conditions, the competition scenario and the urge to gain a competitive advantage.

Organizations can enter foreign markets using different modes of entry. These include exporting, turnkey projects, licensing, franchising, joint ventures, wholly owned subsidiaries, strategic alliances, mergers and acquisitions and piggybacking. Though many organizations aim for globalization, only a few succeed in it.

The parameters that can be used to measure the level of globalization achieved by an organization are presence in strategic markets, location of value-adding activities, achieving a desirable balance between globalization and customization, consistency in quality and pricing of services, and responding to the changes in the environment.