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The challenges of globalisation Essay

Next offers an international delivery service to all there online customers this could be challenging for next to because if they give international customers an estimated delivery of their products they are completely relying on their curriers, and if the product does not arrive on the day that next said It would then next could get a bad reputation and bad reviews this will have a negative impact on the company and will discourage customers from buying online this means that next will see a decrease in sales.

Availability

Since Next went global there has been a huge increase in demand for next products this makes it hard for next to have all of their products available to everyone all the time, in fact it would be impossible so certain people will be forced to wait a long time for the product they want. However as long as next can make their products available to the majority of customers then they will not lose customers.

Laws and regulations

Laws and regulations would prevent Next from sending items such as lighters, sharp objects and electrical this could narrow the products that next have available for sale in other countries. Other laws that next may face are the import tax that they will have to pay on importing goods to and from countries.

Language

Language could be a barrier for some companies that want to globalise themselves, however for next a company which is such a big concern, their websites are available in every language that they sell in, this makes it easy for customers from abroad to purchase whatever they please from the next website.

Customs

Customs can be huge problems for companies. it could be problem for Next because when shipping long distance of the items could be delayed and this could impact the customers delivery date, this could give Next a bad reputation and have an impact on sales.

Tax

Tax will have a huge effect on next because every country has different tax rates the UK tax rate for value added tax is 20% and Spain’s 36.3% this means it is more expensive for consumers in spin to purchase next goods.

Currency & payments/security of payments

Cultural sensitivity

Next have customers all over the world, this could be a problem to Next because some of the items that they sell in UK stores may not be available in countries such as Dubai. Why is this? Certain laws and regulation will deter Next from selling goods that they know are much less likely to sell in certain geographic locations such as Dubai. In short Dubai’s culture frowns upon revealing clothes for example, women’s dresses with low necklines which would be perfectly acceptable in the UK, would be going against culture and even breaking laws in Dubai so it would make no sense for next to mass advertise this product however in the UK the dress could be a huge success and make next lots of money. In contrast there will be a minority of people that want the dress in foreign countries this can create a dilemma for next because the majority of shoppers worldwide would admit to switching shop if they cannot find the product they want or need.

Keeping up with trends in other countries

It is a challenge to keep up with trends in one country, however next has to keep up trends in over 70 countries, it is challenging because trends can change on a monthly or even weekly basis, so next cannot simply sell one range of clothing in every country because every country will have different demands so they must tailor their stock to there diffrerent target markets abroad.


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