This chapter discusses the importance of strategic approach to the phenomenon of globalization with mobile business. Globalization is the exclusion of geographical boundaries when conducting business, considering that, in today’s business world the concept of the dynamic aspect of the globalization is inevitable. Advances in information and communications technologies have helped globalization to evolve rapidly, providing the opportunity for local businesses to operate internationally. A mobile business also can exploit the opportunity of globalization. This chapter also examines how a mobile business can approach globalization strategically. Further more this chapter explains that a semi-mobilized business can become fully mobilized in order to operate more efficiently and effectively. introduCtion
TopAn Overview Of Globalization
Globalization is the exclusion of geographical boundaries when conducting business and, in today’s business world, it is dynamic and inescapable. Globalization gathers the world economies for the purpose of trade and culture removing the trade barriers such as language and cultural barriers (Roll, 2001). Based on the World Bank (1995) report on world development, globalization is unavoidable. The phenomenon of globalization is the dominant and the most controversial concept. Businesses have no alternative but to face this phenomenon nevertheless they have to approach it strategically and secure a place for themselves in the global market.
There are many literatures on the concept of globalization delineating different perspectives of globalization. George and Wilding (2002) argue that there are five perspectives on globalization, technological enthusiasts, Marxian pessimists, pluralists, skeptic internationalists, and a political approach. These perspectives can fall into two categories pessimistic view and optimistic view.
“Globalization itself is neither good nor bad. It has the power to do enormous good-but for many, it seems closer to unmitigated disaster.” (Stiglitz (2002)the economic noble price winner)
Optimistic spectators argue that globalization is an opportunity for any type of business any where around the world. As an example a mobile business can expand its operation globally acquiring new customers increasing its global market share.
The pessimistic viewers perceive globalization as a threat to small business survival due to intense competition forces as an example a small mobile business has to fight the forces of globalization in order to retrieve its operation.
Hibbert (2005) suggests that the driving forces for globalization are global economy, global politics, global work, global culture, global trade, global loan, global investment, global bodies, global business, global language, global communication, and global competition. Figure1 below portrays these driving forces.
Globalization is a result of the following causes. Each cause is briefly explained here.