What is Global Competition?
In a business , one always has competitors: trying to make a better product, cheaper. Global competition means that ones competitors can be anywhere.
Take an Florida orchid breeder for an example: His climate gives him an advantage, and he has access to good water and cheap labour, with a fairly good transportation system (US Post office, or those brown trucks).
But now, lots of other countries in good climate areas (Singapore, Taiwan, China, Vietnam) with even cheaper labor, with FedEx delivering to the US faster than the Florida breeder, means one thing: The FLorida breeder has new viable competitors.
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Let's take each word separately.
Global means around the world; worldwide.
Competition is rivalry between businesses striving for the same customer or market.
So -- global competition is the attempts of businesses to sell their products to other countries in the world. A good example is the automobile industry. Years ago, most Americans bought U.S. made cars. However, in more recent years, we've been buying more Japanese, German and Korean cars, which has severely hurt the American manufacturers.
To understand global competition, you can start by analyzing the market and identifying potential competitors. Look for businesses that offer similar products or services and target the same customer base as your business. Consider factors such as price, quality, distribution channels, and customer loyalty to assess the level of competition.
Next, research the global market to identify international competitors. Look for companies from different countries that are already targeting customers in your market. This can be done through market research reports, industry publications, trade shows, and online resources.
Once you have a list of potential global competitors, analyze their strengths and weaknesses. This may include evaluating their market share, brand reputation, product innovation, pricing strategies, distribution networks, and customer satisfaction. By understanding their strategies and capabilities, you can identify areas where you can differentiate your business and gain a competitive advantage.
It is also important to stay updated on the latest trends and technologies in your industry, as well as global economic factors that may impact competition. This can help you adapt your business strategy to stay competitive in the global market.
In summary, global competition refers to the rivalry between businesses in different countries that are vying for the same customers and markets. Understanding how to analyze and navigate the global market can help your business effectively compete on a global scale.