Globalization, Innovation and Sustainability

ABSTRACT

Businesses operating in the global market now face both possibilities and challenges due to globalization. Maintaining competitive advantages in the face of growing international rivalry has become tricky. This essay critically analyses how globalization has affected company competitiveness using pertinent theories and recent research. An instance study of Nike, Inc. is laid out to demonstrate the difficulties of globalization and how firms might deal with them. The report emphasizes the significance of transparency in supply chains and sustainable, innovative thinking as critical methods for businesses to address the problems of globalization. The study highlights companies’ need to adopt environmentally conscious procedures and cutting-edge business models to stay competitive worldwide.

INTRODUCTION

The practice of investors, economies, and civilizations on a global scale is a result of globalization. While this process has given firms previously unheard-of opportunities, it has also seriously threatened their ability to maintain their competitive edge in the global market (Verbeke, Coeurderoy, & Matt, 2018). Businesses are facing new, complex challenges as they operate in a more worldwide context, which calls for creative solutions.

Using pertinent theories and recent research, this essay critically analyses how globalization has affected organizations’ ability to maintain competitive advantages (Evert Gummesson, 2017). We specifically look at a case study of Nike, Inc. to show the difficulties associated with globalization and how organizations might overcome them. The study emphasizes the relevance of ethical procedures and creative approaches for corporations to adjust to the obstacles of globalization by incorporating concepts and thoughts of innovation and sustainability.

The report emphasizes the significance of supply chain transparency and sustainable innovation as critical methods for businesses to address the problems of globalization. The study highlights companies’ need to adopt sustainable practices and cutting-edge business models to stay competitive in the global market.

Opportunities and challenges

Businesses operating in the global market have faced both possibilities and challenges due to globalization. While opening up new markets and providing chances for expanding and growing, globalization has also heightened competitiveness and made it more challenging for companies to preserve competitive advantages over the long run (Mukherjee, 2018). This response will use a specific case study to support the thesis. We will critically apply pertinent theories and recent literature while considering the lessons that may be drawn from globalization, innovation, and sustainability.

Some of the opportunities associated with globalization in an organization are as follows:

Access to new markets: The opening of new markets through globalization has allowed firms to grow and expand (BRETOS & MARCUELLO, 2016). Now, businesses may contact clients in new markets and exploit growing economies’ potential.

Diversification: Globalization has made the ability to diversify operations and lessen reliance on a single market possible (BRETOS & MARCUELLO, 2016). Through diversification, businesses can reduce risks from cyclical economic changes, political system unrest, or consumer preference shifts.

Thanks to globalization, including talent, technology, and cash, new resources are available. To drive growth and innovation, businesses can access specialist talents, cutting-edge technologies, and capital through worldwide networks (Mukherjee, 2018).

The requirement to preserve sustainable competitive advantages is one of the fundamental difficulties organizations encounter in the globalized world (BRETOS & MARCUELLO, 2016). It is now possible to maintain a competitive edge in the global market using traditional sources of competitive advantage like low-cost labour, access to natural resources, and economies of scale. The four interconnected components listed in Porter’s Diamond Model for competitive advantage are factor conditions, demand conditions, linked and supporting industries, firm strategy, structure, and rivalry. Firms must consider using these characteristics across various nations and cultures in the globalized world because they are not restricted to a particular nation or region (Mukherjee, 2018).

Case study on the target organization

Nike, Inc. is a case study highlighting the difficulties that firms face due to globalization. Nike is a global market leader in the sportswear sector, but it has come under fire for its labour policies in poorer nations. Numerous claims of abuses of labour laws, including child labour, unsafe working conditions, and low pay, have been made about Nike’s use of low-cost labour from developing nations (Zhang, Kim, Mastromartino, Qian, & Nauright, 2018). The bad press has harmed Nike’s brand these accusations have created, resulting in consumer boycotts and demonstrations.

Nike has developed several methods to strengthen its sustainability and competitive edge in response to these difficulties (Moeller, 2018). Innovative thinking is one such tactic. Nike has invested significantly in R&D to produce environmentally friendly products and methods, such as recycled polyester and waterless dyeing. Nike’s environmental effect is lessened by these technologies, which also help Nike stand out from its rivals and attract customers who respect sustainability.

Supply chain openness is another tactic Nike has used to solve the problems caused by globalization. Nike has worked to increase the supply chain’s transparency by sharing data with its vendor partners and examining their business practices (Jensen & Whitfield, 2022). This has boosted the image of Nike with clients and assisted in addressing allegations of labour law abuses.

Lessons acquired from the module

The need for globalization in an organization

The necessity of globalization in an organization is one of the most important lessons I took away from this subject. Businesses need to embrace sustainable practices immediately, given our progress toward a more globalized and connected society (Ritzer & Dean, 2019). Businesses that do not value sustainability run the danger of tarnishing their brand and losing revenue to rivals that do. By implementing sustainable practices, businesses can lower costs, increase efficiency, and generate value for stakeholders.

The Influence of globalization on the Business Competition

The module’s focus on the Influence of globalization on corporate competitiveness has taught me yet another vital lesson. In the global marketplace, globalization has emerged as a critical factor in corporate success and growth (Ritzer & Dean, 2019), enabling organizations to set themselves apart from rivals and develop fresh growth prospects. By using new methods, businesses can maintain a competitive edge in the face of quickly evolving market conditions (Wheelen, Hunger, Hoffman, & Bamford, 2018).

The need for the organization to have effective communication in problem management

The stimulating activity emphasized how critical good communication is to crisis management. Organizations should be capable of successfully interacting with all parties during a crisis, including staff members, clients, and the media (Wheelen, Hunger, Hoffman, & Bamford, 2018). Ineffective communication can make the issue worse and harm the company’s brand. Businesses may lessen the effects of a crisis and save their reputation by implementing effective communication tactics and standards.

Conclusion

The sustained competitive advantages of enterprises functioning in the global market have been severely hampered by globalization. A detailed case study of Nike, Inc. was utilized to highlight the difficulties associated with globalization and how organizations might overcome them in this paper’s critical analysis of how it affects company competitiveness.

References

Verbeke, A., Coeurderoy, R., & Matt, T. (2018). The future of international business research on corporate globalization that never was…. Journal of International Business Studies, 49(9), 1101–1112. Springer. https://doi.org/10.1057/s41267-018-0192-2

Evert Gummesson. (2017). Case theory in business and management: reinventing case study research. Los Angeles: Sage.

BRETOS, I., & MARCUELLO, C. (2016). REVISITING GLOBALIZATION CHALLENGES AND OPPORTUNITIES IN THE DEVELOPMENT OF COOPERATIVES. Annals of Public and Cooperative Economics, 88(1), 47–73. https://doi.org/10.1111/apce.12145

Mukherjee, S. (2018). Challenges to Indian micro, small scale and medium enterprises in the era of globalization. Journal of Global Entrepreneurship Research, 8(1). springer. https://doi.org/10.1186/s40497-018-0115-5

Zhang, J. J., Kim, E., Mastromartino, B., Qian, T. Y., & Nauright, J. (2018). The sports industry in growing economies: critical issues and challenges. International Journal of Sports Marketing and Sponsorship, 19(2), 110–126. https://doi.org/10.1108/ijsms-03-2018-0023

Moeller, K. (2018). The gender effect : capitalism, feminism, and the corporate politics of development. Oakland, California: University Of California Press.

Jensen, F., & Whitfield, L. (2022). Leveraging participation in apparel global supply chains through green industrialization strategies: Implications for low-income countries. Ecological Economics, p. 194, 107331. https://doi.org/10.1016/j.ecolecon.2021.107331

Ritzer, G., & Dean, P. (2019). Globalization: the essentials. Hoboken, New Jersey: Wiley-Blackwell, John Wiley & Sons, Ltd.

Wheelen, T. L., Hunger, D. J., Hoffman, A. N., & Bamford, C. E. (2018). Strategic Management and Business Policy : globalization, Innovation and Sustainability (15th ed.). Harlow, England Pearson.