The advent of globalization has resulted in companies transcending boundaries and going to different places. This has resulted in making the whole world a global market place. The various changes in environmental factors like technology and an economy have helped in the process of globalization. In order to take advantage of the numerous opportunities and economies of scale, it is important that the companies should go global. This helps them to increase their target market and also develop competitive advantage. It is essential that the company should know whether their products are suitable for the global markets or not.
In order to know about whether the current products would suit the market place or not, the company should first research about the demand of their products. They should also search about the availability of the products. In order to do so, they should first conduct a global market research. They should search various market reports of the woolen industry globally. They should find about the global market conditions. They should research regarding various factors that affect the industry. The company can get this information through various market researches.
They should know whether there are other companies who are selling same products or not. They should also find whether there is potential for their products in the markets. Criteria to Take the Decision There are various criteria that the company must consider in order to know whether their products are suitable for the global market place or not. These conditions are given below: • The company must consider the demand for the product. The demand of the product should be higher. • The company must also consider the availability of the product in the world market. • The firm must consider the local competition
• The organization must also consider the barrier to entry and exist. • The price structure in the global market place should be suitable for the company. • The operating cost of various locations should be sustainable. • The decision to go global must be profitable for the firm. • The capability of the company to manage different locations. • The cost involved should not be a problem for the organization. • The tariff imposed should also be considered. • Various environmental factors like political, legal, social and cultural, demographic should also be considered.
These factors should be kept in mind while deciding whether the company’s products are suitable for the global market place or not. If all the factors are suitable for the organization, then they should consider their products suitable for the global marketplace. After analyzing various factors and the criteria to check the suitability of their products in the global market place, it has been found that the firm’s products are suitable for the global marketplace. The company’s product have a great demand in global markets and in order to bank upon the demand, the company would go ahead with its decision to open up to the global markets.