Essay Example: Key Differences Between Domestic, International, and Global Markets

The domestic market involves the activities of the marketing strategies that companies use to compel and attract consumers to buy their products or services within one country. As explained by Surbhi (2017), the domestic market can also target a specific region within a country with the specifications of the clientele's demands. In this line, only limited consumers are benefiting from the company’s products and services. Due to their scope, most of these companies are pointing out to their growth and expansion to other countries internationally. An example of a domestic firm with the proposed expansion strategy is Macy’s Retail firm from America.

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On the other hand, the international market involves firms that can sell their products and services beyond a local country. Firms with this broad business network target their consumers from international marketing spheres. One of the main determinants of such companies is the significant investment capital for its success (Markgraf, 2019). Such markets may access the international markets irrespective of boundaries or government blockades, focusing on global clients.

Global marketing includes the business organizations operating from its main headquarters with its target customers receiving its services from across the world. Its success is through the strategy of internationalization, where the firm sets out a precise product and services that globally suit their consumers (Prachi, 2019). The policy of globalization allows the company to distribute its products and exercise mass production, which is significant for cost reduction and expansion of the economy of scale.

Benefits and Challenges of Accessing the International Business

Macy’s is among the best retail stores in America, placing it in a position to expand into other countries. The retail store is currently targeting new markets, including Abu Dhabi and China. One of the main benefits of accessing the international market is the building of the reputation of the firm's product. When a brand sells through various market spheres across the world, its consumers become more aggressive towards the firm (Troy, 2019). It also allows for the access of new opportunities from the global markets. The expansion can be reliable to create a large market and consumer base for the benefit of Macy's retail stores.

However, access to the international market comes with several challenges. The regulatory and legal formulation is among Macy's must consider before investing in other countries. These include laws and policies that govern global business operations. On the same note, ethical factors also vary from one state to the other (Surbhi, 2017). Countries like China and Abu Dhabi have their socio-cultural differences, ethics, and morals that dictate the type of goods or services they receive. Besides, expanding the company to meet international competitors requires significant investment and efficient management.

Understanding the Business Environment

Macy's retail store must consider the business environment before investing in new countries. Economic factors influence different aspects of business growth, including employability and purchasing power. Another issue is the political or legal considerations of the target countries (Markgraf, 2019). The regulations and legislative frameworks define the aspects of traffic, quotas, and revenues. The use of technology also establishes the business's level of success upon access to the new internal market. It helps in solving the organizational structure and problems within the firm. The socio-cultural aspect defines people's way of life and how they react to market products and services.

References

Markgraf, B (2019). Major Trends in International Business. Retrieved from https://smallbusiness.chron.com/major-trends-international-business-60529.htmlPrachi, M. (2019). Global Marketing Vs. International Marketing. Retrieved from https://theinvestorsbook.com/global-marketing-vs-international-marketing.html

Surbhi, S. (2017). Difference Between Domestic and International Marketing. Retrieved from https://keydifferences.com/difference-between-domestic-and-international- marketing.html#:~:text=Domestic%20marketing%20is%20when%20commercialization,a nd%20services%20is%20done%20globally.

Troy, D. (2019). Advantages of International Marketing. Retrieved from https://industrytoday.com/advantages-international-marketing/