Is the novel coronavirus causing the end of globalization? No. In fact, I believe globalization will incite a new network through new-found distribution channels.
While anti-globalization sympathizers push to limit the access of information available across the globe, it is imperative to remember that it is because of globalization that the BRICS are transforming to what they are today, which ultimately boosts developing economies.
In the past, trade deals have encouraged companies to globalize production. The way I see it, globalization is the resilient common denominator of multinational business success. But how do we maintain said success? There is no question about the harm caused as a result of the coronavirus pandemic. Economies shrunk. U.S. unemployment hit an all-time high. Global tourism was (and still is mostly) a no-go, and the oil industry plummeted. It is important to realize that a global presence uncovers endless opportunities for the transfer of knowledge.
How will global economies recover? I believe globalization is a clear answer for how global companies can recover. What matters most to succeed is focusing on your supply chains, global networking, steady communication and staying true to your company’s values and ideology.
The World Trade Organization (WTO) provides a host of resources, topics and articles indicating that globalization is vital to future business success as many businesses are on the brink of extinction. The ability for companies to research, distribute and manufacture on an international scale is more possible than ever. Companies that reside in the consumer packages goods (CPG), manufacturing and pharmaceutical industries, among others, will need to create a highly effective strategy to maintain a sustainable competitive advantage on all fronts — in particular, on the international stage.
Research published in Pepperdine University’s Graziadio Business Review by Katherine Dao, Mark Chun and Charla Griffy-Brown notes that companies are prompted to revisit old working strategies and alter them to a sustainable, new future. The future of work is leaning remote, and we are already seeing examples of this in major multinational corporations allowing employees to work from anywhere in the world. The well-researched article touches on a five-step strategy formulation model, in which global business executives can adjust to their company’s needs accordingly.
Good things can come from change, even on a multinational level. With that said, I believe the global economy is ready to take off from recent lows, focusing on new pro-growth proclamations in which companies can take full advantage. Ultimately, this could create more jobs in the U.S., leading to an uptick in exports.
Let us look at an example. The healthcare sector is illustrating continuous advancements in times of crisis, in addition to the added support of governmental agencies. The urgent need for an effective international vaccine distribution plan is vital to not only the success of our recovering economy but to human life. Globalization, increased trade and more access to information are making this happen.
So, what can companies do when faced with the ongoing challenges of barriers to entry, import/export taxes, cultural differences and, of course, Covid-19 to achieve long-term success? The answer is simple: Look beyond your current business plan and expand.
We work with clients across various industries (medical technology, biotechnology, automotive, CPG, etc.) that are continuously pushing boundaries by exploring a multichannel approach that not only allows them to enter new markets but actually enables organic brand and product recognition. Paid marketing is one thing, but what really differentiates the winners from the losers is building and establishing ongoing relationships with valuable media sources that will lead to broader and more diversified audiences around the world.
So, let’s look at a couple of best practices from a communications standpoint:
As you develop a global strategy, it is crucial that you do not overlook positioning and messaging. There are several moving parts when launching your business on a global stage, yet you must be able to clearly communicate what you are offering and why it will serve an underserved market. With that said, understanding the culture, language and tone in the territory in which you are expanding will play a vital role in your future success.
On the other hand, relationships abroad are of utmost importance as you look to intertwine your business with a different culture. Particularly, get to know the media in the market in which you plan to expand. Relationship building is crucial to success here in the United States, and it is no different abroad.
Companies have an opportunity to capitalize on the dream of becoming multinational household names. Try something new and shake hands with the unknown; it will only give you better opportunities for growth.