Marketing Channels Essay

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Article: The increased competition due to globalization

Introduction
James Harden works as a junior manager in the automobile manufacturing factory for GM Holden, which is one of the top 3 automobile manufacturers in Australian. The globalization of production and marketing give rise to the increased competition for the GM Holden and working life for the business persons. This essay aims to analyze the increased competition due to globalization on the basis of GM Holden’s example. This essay is composed of three parts. The first part make brief introduction; the main body will discuss the increased competition due to globalization. The final part will make several conclusions.
The main body
This section will identify the outline the increased competition due to globalization, analyze the influence of the increased competition on GM Holden and point out the implications about the influence.
The globalization will integrate the domestic markets from various countries into the global market. It will intensify the competition in the production factors market and the product selling market (Islam and Meade, 2012). What’s more, the globalization will accelerate various countries to open the domestic markets. Hence the domestic corporations have to suffer from the competition from the global competitors. Besides, the globalization also results in the global labor force market, which will intensify the competition in the labor force market. Hence globalization gives rise to the increased competition. GM Holden also suffers from the increased competition in the production selling market and the procurement market.
The increase competition will significantly affect the corporate operation and working practices of GM Holden. Firstly, the increased competition in the raw material procurement market will increase the prices for the raw materials, which will increase the production costs for GM Holden. In addition, the increased competition in the raw material procurement market will give rise to the market risks for GM Holden (Pangarkar and Wu, 2012). Secondly, the increased competition in the product selling market will challenge GM Holden; the corporation has to compete with the increasing rivals to sell the products. Hence it will increase the sales costs for the corporations. In addition, the corporation has to improve the corporate promotion to maintain and enlarge the market shares, which will increase the marketing costs for GM Holden. Thirdly, the increased competition in the labor market will intensify the employee’s competition in GM Holden; it will be harmful to form the harmonious working team. Finally, the increasing competition in labor market will increase the difficulty for the corporations to hire the desirable talents, which will increase the recruitment costs for GM Holden.
The positive
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