Question

Provide a case for a company that's business was similarly affected...

Provide a case for a company that's business was similarly affected or transformed due to the forces of global competition. In view of this company discuss the pros and cons of globalization from the point of view of the consumer or buyer and that of the company.

Answer 1

Blockbuster LLC's decline due to global competitors like Netflix demonstrates the impact of globalization on businesses, which offers consumers more choices and competitive prices but can lead to local business decline and market homogenization. Companies gain market access but face increased competition and must innovate to survive.

Step-by-step explanation:

Case of Business Transformed by Globalization

One notable example of a company whose business has been transformed due to globalization is the Blockbuster LLC, the video rental company. Its decline can be attributed to the rise of global competitors such as Netflix, which leveraged the internet for video streaming, a technology and globalization-based shift. Consumers could now access a vast array of digital content from anywhere across the globe, which increased competition significantly for traditional retail businesses like Blockbuster.

Pros and Cons of Globalization for Consumers and Companies

Pros for Consumers: Globalization has expanded consumer choices, provided access to more diverse products, and often resulted in lower prices due to increased competition. Pros for Companies: It has enabled businesses to tap into international markets, diversify their supply chains, and reduce costs by outsourcing manufacturing to countries with lower labor costs.

Cons for Consumers: Global competition can lead to the decline of local businesses and the homogenization of products. Cons for Companies: Firms face stiffer competition which can lead to price wars, diminished profits, and the need to constantly innovate to stay relevant. Additionally, the reliance on global supply chains can introduce risks such as political instability and trade conflicts.

In summary, while globalization fosters greater competition and access to markets, it also impels companies to reinvent themselves to maintain a competitive edge. For consumers, it can mean broader choices and cheaper goods, but it may also result in the erosion of local businesses and job markets.

Answer 2

Nokia is an example of a company that was affected by global competition’s forces. Globalization has pros and cons for both consumers and companies.

Step-by-step explanation:

An example of a company that was similarly affected or transformed due to the forces of global competition is Nokia. Nokia, a Finnish telecommunications company, was once the dominant player in the mobile phone industry. However, the rise of global competition, particularly from companies like Apple and Samsung, significantly impacted Nokia's business.

From the perspective of the consumer, globalization has several pros and cons. On one hand, globalization provides consumers with access to a wide range of products and services from around the world, offering greater choices and potentially lower prices. On the other hand, it may also lead to the loss of local businesses and products, as multinational companies can often undercut local businesses and dominate the market.

From the perspective of the company, globalization can bring both advantages and disadvantages. On one hand, it allows companies to access larger markets and reach a global customer base, which can result in increased sales and profits. On the other hand, it also intensifies competition, making it more challenging for companies to differentiate themselves and maintain market share.