In today’s conditions of market globalization and a highly competitive environment, businesses are forced to adapt their operating models to withstand competitive pressure and operate sustainably to address the interests of as many consumers as possible. Successful companies that have implemented their international plans enter the global market and become leaders in their areas. However, this principle of developing business potential has become generally accepted in the last decades, while earlier, few corporations could use their resources productively to become recognized flagships and compete globally. Hout et al. (1982) provide the examples of three such enterprises – the Caterpillar Tractor Company, L.M. Ericsson, and Honda, which developed their business strategies successfully to be effective internationally, although they took distinctive approaches to implement growth steps. By now, many companies have gained the assets and marketing capabilities that enable them to operate in the global market and withstand competition, thereby conducting their businesses in many countries. This discussion is aimed at providing the examples of such ventures, and as sustainable and successful corporations, the Coca-Cola Company, the LG Group, Amazon, Adidas, and the Toyota Motor Corporation will be cited, including the analysis of their strategies compared to those applied by Caterpillar, Ericsson, and Honda.
Success in the global marketplace largely depends on the productive marketing course to which companies adhere. According to Brondoni (2019), the case of Coca-Cola proves the importance of smart brand policy promotion among the public, which has allowed the Coca-Cola Corporation to grow into one of the largest and most recognized businesses worldwide. When comparing its growth strategy to those reviewed by Hout et al. (1982), one can note its development is similar to that of Honda that aimed its products at middle-class Americans and was successful in creating a value proposition. Coca-Cola supplies most of the countries in the world, and although it has competitors, such as Pepsi and Nestle, the corporation maintains a leading position in its niche due to effective marketing. Another example of a company that has achieved global recognition and continues to sell internationally is the LG Group. This Korean brand has successfully implemented an innovative development strategy and become one of the leading global manufacturers of multimedia equipment (Kim & Yoo, 2017). In its approach to growth, LG is reminiscent of Ericsson that also pursued and pioneered innovation in the media market (Hout et al., 1982). As research shows, the practice of sustainable innovation contributes to risk mitigation and increases the loyalty of the target audience (Brondoni, 2019; Hout et al., 1982). Amazon is another global market participant that has effectively developed a tailor-made global promotion strategy and created a “strong brand name location” in an effort to maintain its competitive advantage (Sadq et al., 2018, p. 65). This method is similar to the strategy promoted by the Caterpillar Tractor Company that also created a mechanism for individual growth through the rational appraisal of costs and benefits, which is a reasonable approach to distributing available assets adequately (Hout et al., 1982; Sadq et al., 2018). At the same time, some other global businesses adopt distinctive methods of development and gaining recognition, such as Adidas, which, along with an effective marketing program, strives to implement the principles of corporate social responsibility (Sicoli et al., 2019). Timing and financial capabilities mentioned by Hout et al. (1982) are not the only factors contributing to a winning international strategy, and the case of Adidas proves this because the corporation is among the leaders in the fashion industry. Finally, as another successful enterprise, one can pay attention to the Toyota Motor Corporation, the globally renowned auto manufacturer that, according to Toma and Naruo (2017), relies on continuous optimization and innovative growth, which is similar to Caterpillar’s approach because the latter also constantly improved its manufacturing practices (Hout et al., 1982). Thus, many modern giant companies that have achieved success in the global market and overcome competitive barriers have retained the approaches to growth, which other businesses utilized previously.
To reveal new nuances of business activities associated with success at the international level, the authors of the aforementioned studies propose to pay attention to new research directions. Brondoni (2019) offers to assess how effective anti-competitive policies can be in conditions of business mergers. Kim and Yoo (2017) mention the possibility of a more detailed review of risk management practices in the context of not only innovative but also financial strategy development. For Sadq et al. (2018), the analysis of the use of e-retailing business approaches by small firms is seen as a promising research area. Sicoli et al. (2019) suggest comparing the success of Adidas with other major fashion brands to identify differences and similarities in operational and other aspects. Finally, as Toma and Naruo (2017) state, expanding the analysis of available improvement practices in the context of Toyota’s business can help broaden the scope of innovation. All these research areas are perspectives within the discussion of the specifics of international business and competition.
References
Brondoni, S. M. (2019). Shareowners, stakeholders & the global oversize economy. The Coca-Cola Company case. Symphonya: Emerging Issues in Management, (1), 16-27.
Hout, T. M., Porter, M. E., & Rudden, E. (1982). How global companies win out. Harvard Business Review, 98-108.
Kim, S., & Yoo, J. (2017). How does LG Group embed enterprise risk management (ERM) system in its conglomerate governance to control its affiliated firms’ risk events? Journal of Applied Business Research (JABR), 33(3), 637-652.
Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018). Analyzing the Amazon success strategies. Journal of Process Management. New Technologies, 6(4), 65-70.
Sicoli, G., Bronzetti, G., & Baldini, M. (2019). The importance of sustainability in the fashion sector: Adidas case study. International Business Research, 12(6), 41-51. Web.
Toma, S. G., & Naruo, S. (2017). Total quality management and business excellence: The best practices at Toyota Motor Corporation. Amfiteatru Economic Journal, 19(45), 566-580.