Global Segment

• The global segment includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets.
• When studying the global segment, firms should recognize that globalization of business markets may create opportunities to enter new markets as well as threats that new competitors from other economies may also enter their market.
• In light of threats associated with participating in international markets, some firms choose to take a more cautious approach to globalization.
• Family business firms, even the larger ones, often take a conservative approach to entering international markets.
• Globalfocusing often is used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets.
• This approach allows firms to build on to and use their core competencies while limiting their risks within the niche market.

  Globalfocusing
• Another way in which firms limit their risks in international markets is to focus their operations and sales in one region of the world.
• Increasingly, the informal economy as it exists throughout the world is another aspect of the global segment requiring analysis.
• Growing in size, informal economy has implications for firms’ competitive actions and responses, in that increasingly firms competing in the formal economy will find that they are competing against informal economy companies as well.