Born global firms have a different internationalization process than traditional multinationals. They're more likely to start internationalizing from the get-go, have a more global orientation, and use more internationalized marketing and organizational structures.
They are born with the inherent need and drive to be successful in multiple countries from the outset. This necessitates a different approach and a different set of capabilities than companies that expand internationally over time.
There are three key drivers of born global internationalization:
1️⃣ Technological advance that has made it possible for companies to operate globally from day one;
2️⃣ The growth of global markets, has created opportunities for companies to sell their products globally.
3️⃣ The rise of the Internet, has allowed companies to reach customers and suppliers anywhere in the world at a low cost.
The technological advances that have driven the born global phenomenon include the development of communication technologies such as email, instant messaging, and video conferencing, as well as transportation technologies that have made it possible for companies to ship goods.
At the same time, there has been a dramatic increase in the number of people who are connected to the Internet, creating a global market for products and services.
This has made it possible for companies to establish operations in multiple countries without having to open physical offices or hire employees in those countries.
In many cases, a company’s first employees are located in its home country but its customer base and suppliers are located all over the world. The growth of online social networks has added another layer of complexity to the born global phenomenon.
Online social networks allow companies to connect with potential customers and suppliers more quickly and easily than ever before. They also allow companies to get feedback from customers and suppliers about new products and services before they launch them into the market.
This feedback can be extremely valuable in helping companies to develop products and services that meet the needs of their target markets. The growth of born global businesses is challenging traditional notions about how businesses should operate internationally.
Instead of expanding gradually into new countries, these businesses are entering new markets head on, often through online channels.
This requires a different set of skills and capabilities than traditional businesses, including an understanding of how to conduct business in multiple countries simultaneously and a strong focus on customer service.
The challenge for traditional businesses is to understand how these new players are succeeding in foreign markets and adapt their own strategies accordingly.
As more businesses move online, it is becoming increasingly important for businesses to have a presence in multiple countries if they hope to succeed globally.
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Yusuf
@weekly_concepts
Educator turned Solopreneur. Talks about 'all the things that your MBA should've covered.' Store 👉 koji.to/@weeklyconcepts