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Importance of Reaching into New Global Markets in order to Thrive in today’s Economy

This is to bring to your attention that I will present a report on the above mentioned issue to this organization next week. I would also like to inform you that the report will be presented on Friday, 20April, 2012. In the report, I will discuss various ways in which our organization can benefit from exploring global markets so as to enable it thrive in this today’s competitive economy. I presume that this company has the potential to explore new global markets. It is, therefore, the sole responsibility of the executive management to formulate appropriate strategies through which this dream can be realized.

Reaching out to new global markets will lead to accrual of various benefits to the company, such as acquisition of cheap labor and technology from foreign countries thereby leading to increased production, and consequently increase in economies of scale. The company will also be able to explore niche markets whose needs have not been meet fully. This would help the company increase its market share for various products. Through exploration of global markets, XYZ Limited will be able to diversify its investments or corporate holdings, and thus reduce systematic risks of investments.

Furthermore, the company will be able to take advantage of changes in economic, social, legal and political statuses of foreign countries. This will facilitate the company’s ability to widen its market coverage hence increased profits. The company will also be able to tap growing markets in foreign countries. Through increased interactions with global industry players, the company will learn from their innovations and creativity, and thus may adopt such innovations for its benefit. Reaching global market also implies reaching a large number of customers hence increased volume of sales. Lastly, the company will be able to obtain higher profits since most sales to global markets usually bear high returns.

However, adequate precautions should be taken because exploring global markets usually involve lots of risks such as stiff competition from well-established businesses, inability to meet quality standards in foreign countries, barriers of entry into foreign markets as well as different consumer responses to the company’s products. The company may also be affected by fluctuations in exchange rates. I hope that my report will be given adequate consideration.

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