Effects of Corporate Banding on Globalization

Effects of Corporate Banding on Globalization

Introduction

Globalization refers to the process of integrating the people of the whole world into a single society (Pieterse, 1993). It involves both technological, social and mainly, economic aspects of integration (Mooney, & Evans, 2007). Due to the process, companies are expanding their markets to new areas that they did not venture into before. They have been compelled to come up with brands that will be acceptable in all parts of the world since they will be targeting the world market as opposed to the traditional belief that only big companies could expand their market to other countries. Today, companies invest in stocks and this expands their areas of trade both in terms of investment options and geographical aspects as well. The growth of internet industry has led to people getting closer and provides people with the correct knowledge and abilities that may not have been found in their respective countries.

Corporate branding refers to the technique used by firms in marketing their products. They include their company name as the brand name for their products (Balmer, John & Greyser, 2003). A good example is Disney whose name is found on all their products. This technique is used to identify the products with the company unlike in other cases where a company uses a different name for every individual brand they produce. Due to the increased population that companies target as their market, they use their company name as their brand name.

Role of Corporate Branding in Globalization

Some companies have made their name in the corporate world. They have ensured that they have the best products so as to remain popular among their customers. As they increase their market, they prefer to use their company name as their brand name. This has worked well for these companies (Balmer, John & Greyser, 2003). For instance, most car manufacturers use their company name for their cars no matter the size. This helps them sell their products as these products are identified with the company.

1. Ease of Marketing

When companies want to introduce a new product into the market, they only need to lat the public know about their product. No new names are attached to the same. Due to the already existing reputation about the company, they only need to talk of the price and special features. The company’s past reputation does the rest of marketing. In the motor industry, Land Rover has made a name in the production of their all-terrain cars. Anyone in the world would therefore go for their cars from any part of the world. The use of brand name has seen them popular among residents from countries with rugged roads.

2. Hard Market Entry by New products

While globalization has been hailed as a way of opening up the world, there have been many difficulties experienced by the emerging brands (Pieterse, 1993). In sports, companies like Nike and adidas have named their products after their respective companies. They label their clothing and any other object related to sports after their company. They also sponsor many players on different sports and this ensures that they intensify their markets. In this case, many people like the tools and clothing from these big companies. If a smaller company attempted to venture into the same industry, there would be a high resistance because there is a perception that the best products are obtained from the particular company and any other company is either an imitation or of poor quality. They get little attention hence poor response from the intended customers. This has the effect on globalization because smaller economies that can not compete with the big companies become disadvantaged (Mooney, & Evans, 2007). They are placed in a situation where they can not command any market, yet they buy from the big companies. In other words, there is an economic imbalance and less spread of new products into some regions thus unequal globalization.

3. Thriving of Poor Products

Some companies use corporate branding to fill the voids that they leave whenever they fall into scandals. Some use rebranding to ensure that there is little to connect them to a product that earlier on hurt the market (Balmer, John & Greyser, 2003). A good example is Blackwater which had been subcontracted by Halliburton in Afghanistan to take care of the American soldiers. They opened fire and left over 17 people dead and the only thing they did was rebranding. They continued to enjoy their share in the market and the American administration at the time denied any responsibility. This was a good example where corporate branding could harm the global market.

4. Emergence of New Economic Powers

The slogan of “rebrand America” can also be sued to determine the extent to which branding can change the global political scenes. To hide the country from the grown hostility from the rest of the world, rebranding could be used. If successful, it changes the perception of the people towards the old brand yet the product remains the same. This has been happening in the global market. A company changes its brand and not the product which eventually leads to the perforation of a bad product into new markets. Instead of giving the market a good product, a new name and a bad product is circulated. This is what America did and had many implications on political globalization (Mooney, & Evans, 2007). While the rebranding campaign brought by Obama brought high hopes of America getting better than it was, it was later realized that there was more that needed to be done because to the bar had been placed too high by the brand that Obama campaign team had put up. He did no perform as expected. There was an economic dip that was very severe and this led to the emergence of new economic powers such as China. There was an even distribution of economic power. Though America has remained a superpower, the rebranding led to many developing economies seeking partnership with other countries and not America.

5. Increased Acquaintances

Corporate branding has resulted to many people coming together especially through the use of internet (Balmer, John & Greyser, 2003). Social globalization has gained from corporate branding in that people have identified more forums for interaction. When one needs to get a friend fro a specific region, there have been several ways to get them. The most popular brand is facebook. While the company name is facebook, its products are also called facebook. People from all over the world have met here and have improved communication leading to a more integrated global society.

6. Creation of Jobs and Dissemination of Information

Some brands have already made their names and made business much easier than it was before. Online businesses have cropped up with people from all over the world coming together to work. New industries have been set up and new ideas have been disseminated to people all over the world through the internet. People have even studied and earned online credentials including degrees and diplomas. Payments are done through these channels and people are nowadays not afraid of the risk of losing their money. This has been created by the reputation if the organizations they work or school with. Corporate brands that have proved trustworthy by clients have improved trade and eventually globalization (Mooney, & Evans, 2007).

Conclusion

Corporate branding is an important aspect in the process of globalization. Contemporary branding has been on the rise with economic, political and social forms being the most conspicuous. Through corporate branding, there have been more ties as well as identification of certain brands in some regions. The whole process of rebranding has been very beneficial to the corporations that use it. Further, there have been better political situations that have resulted from the processes making the world a better place. However, there have been times when the whole idea of corporate branding has had overall negative effects on the process of globalization. The young market entrants have faced hostility that has seen them cow and let the existing corporations to continue dominating the market.