Impact of Globalization on Model of Competition and Companies’ Competitive Situation

Abstract

Abstract. Globalization has changed the competitive environment of companies. This paper aims to contribute to understanding the changes a company can face through analyzing the impact of drivers and effects of globalization on the models of industry competition and the company value chain. The boundaries between the forces of competition are fading as economic globalization has led to a new dynamic in the competitive situation where companies and activities of the value chains change places between forces and impact and interact with each other in new ways. The boundaries of companies and their core can and are being redefined. As this potential evolves through offshoring, outsourcing and value chain fragmentation, the pressure of competition forces a continuing and increasing move in this direction.

Role of Logistics and Transport Sector in Globalization: Evidence from Developed and Developing Economies

“…There are various driving factors of the global economy and transnational transportation structure is among one of them [3][4][5][6]. Theoretically, the bulk of the literature is revealing the role of lower trade barriers, lower cost of information, communication, and transportation advancement as a signification contributor to the process of globalization.…”

“…It further ascertains the impact by including the three major modes of transportation i.e., road, air, and sea-ways. Existing literature recognizes transport as a driving factor of globalization yet the empirical evidence is missing [3][4][5]. Therefore, the current study fills this gap and provides an analysis of the case of developed and developing countries.…”

Driving Factors of Globalization: An Empirical Analysis of the Developed and Developing Countries

“…Advancement in technology is considered to be one of the major divers of globalization (Bang & Markeset, 2011;Bauernfeind, 2006;Garrett, 2000;Harris, 1993;Masson, 2001;Mussa, 2000;Obadan, 2008). Technological improvement in the area of transportation and communication has accelerated globalization in recent years.…”

“…Although reduction in the cost of transportation and communication is associated with technological advancement but only few studies explicitly considered lower cost as a determinant of globalization (Bang & Markeset, 2011;Bauernfeind, 2006;Ritzer, 2011;World Bank, 2002). Moreover, cost driver shows the variation in cost and efficiency across countries that push national firms to become global (Bauernfeind, 2006).…”

“…In addition, deregulation and outward looking reforms are considered to be an important source of globalization. In this context several studies, e.g., Bang andMarkeset (2011), Bauernfeind (2006), Fofack (2009), Garrett (2000, Harris (1993), Masson (2001), Mussa (2000), Obadan (2008), Ritzer (2011) andWorld Bank (2002) pointed out government policies as a driving factor of globalization.…”