Question

What are the main characteristics of born global firms? Evaluate the drivers of market globalization that have allowed born global firms such as Instagram to internationalize at, or near, their founding. What advantages do you think a young company can gain by entering international markets soon after their founding?

Answer 1

Born-global firms start exporting their products or services within a few years of being founded, and may export a quarter or more of their total output. Most advance through subsequent stages of internationalization, collaboration with foreign partners or direct foreign investment undertakings. Born-global firms tend to be relatively small and have far fewer financial, human, and tangible resources than large multinational firms considered dominant in global trade and investment.Born-global business executives don't see foreign markets as merely adding to their domestic markets. We have solid entrepreneurial mindset. Across international markets, they compete proactively and vigorously, they take risks and they innovate. Born-global firms tend to adopt differentiation strategies by developing differentiated designs and highly distinctive products which target niche markets, which may be too small for larger firms ' tastes. The emphasis is on enhancing customer loyalty by addressing specific needs in a unique way. "People and companies are increasingly demanding unique and personalized goods, and the niche markets have become a major source of opportunity

Globalization and technological advances are the drivers of market globalization that have allowed born global firms such as Instagram to internationalize

It is important to establish a strong position in the domestic market if your company is to survive, but extending your scope overseas is crucial if your business is to succeed. While it's true that entry into international markets has advantages and disadvantages, the benefits can outweigh the disadvantages. In the old days, obtaining a foothold in the foreign market was much more difficult due to prohibitive shipping costs, communication problems and the lack of adequate technology. Nonetheless, that's not the case anymore and the value of international marketing has never been through. With the support of social media channels your company will reap some of the rewards