Globalization strategy is defined as a method used by companies to gain access to the international market. It implies that various products and right belonging to a particular group can now be accessible despite the client’s location and demands. Different client requests can be met by shipping of the required products as well as opening of stores across the world. The In one way or another a strategy needs to be formulated. The approach helps gain access to the market arena. Global business is rarely confined by boundaries since it operates word wide by adopting of different currencies and regulations.
As per our context, wood and Furniture Company in Canada aims to go global. The company hence has to change its product design in a bid to survive and compete with rivals in the market arena such as Asia. About expanding their boundaries to a global scale, the furniture company is bound to adopt an outsourcing strategy which will see them achieve globalization.
The furniture company should consider globalization due to:
- the Nearness to raw materials
- The presence of potential markets
- Better technology systems
- The few competitors in the market arena
- Readily available labor
An outsourcing strategy has to be adopted as far as the reasons to attain a global market are concerned. An outsourcing strategy involves creating and gaining a competitive advantage in the global market as well as saving on costs such as shipping and transport to various destinations. Given that there is an ever increasing level of technology, the company should adopt e-commerce business as a strategy to attain a global market. E-commerce involves the use of web- based activities to realize sales and an increase in the number of customers. Use of web-based systems includes marketing of products and services over the internet, Orders and purchases can be made hence the client awaits delivery.
- Product design and quality
Achieving product design and quality involves some vital processes and strategies. First, if the furniture company seeks to have the best quality and design of products in the market, some processes have to be adopted. It involves product development process which starts by way of generating an idea regarding achieving a better product to increase the sales over time. The process of product development follows steps as listed below:
- Idea generation- formulating of new ideas
- Design evaluation- weighing the cons and pros of the idea
The team dealing with the design of the product by way of generating ideas should adopt a contemporary design as a far as its structure is concerned. Under modern design lies a matrix structure which is essential in achieving globalization. Matrix structure involves getting and sourcing of experts from different departments from various function or departments of an organization. A matric structure ensures that the process in achieving the perfect product design and product is assigned to one person who is responsible for allocating various resources to the team.
In the course of producing the perfect product design and quality, some initiatives have to be considered as far as quality control is concerned. Quality control involves the process by which the manufactured product meets the expectations of the customer hence regulations have to be set to maintain the normal quality. Such quality control initiatives include
- Confirming the safety of the product
- Evaluating the safety of the product
- Process and layout design
The process involved in creating and a perfect design and layout means minimizing the cost of manufacturing to realize a tangible profit for the organization. The process involved in strategic process selection and design helps improve the productivity of a company’s product. The layout design is an integral part of the manufacturing process. The process allows and ensures a repetitive nature in assembling of products that are of a high quality. The process needs to be on the same functional line with labor and various equipment needed for the process of manufacturing.
A number of advantages come with adopting of taking a hybrid model. They include:
- They offer the business an opportunity to increase the profit margins. Improved margins involve the advantage of selling two products compared to one which results in more substantial benefits.
- They offer most businesses a chance to meet and surpass various customer’s needs or wants. Meeting of a client’s needs plays a great role in improving the experience hence gaining of loyal customers and a better image for the company.
Hybrid models acts as a point of interaction between the business and the consumer. A point of interaction involves knowing of the needs based on the customer’s preferences regarding the design and quality of the preferred product.
A hybrid model aims at creating a connection between the company and the market arena. It helps come up with strategies to deal with potential rivals and adopt the new systems as far as the business is concerned.