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Global Communications Benchmarking Research

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Global Communications Benchmarking Research

University of Phoenix MBA 500

Introduction

Global communications is experiencing many problems. As a corporation, they are seeking to solve their problems by developing new initiatives. One of these strategies is to "realize growth through the introduction of new services, primarily to its small business and consumer customers." In order to "maximize their initiatives the company plans to market itself more aggressively on an international level with the goal of becoming a truly global resource." There are many smaller concepts that can help Global Communications accomplish this goal encompassing concepts like careful international marketing, creating effective partnerships, expanding product lines, network marketing, strategic internal reorganization, and reducing costs by automating the customer service centers. Each of these concepts contains some risk; however, this risk can be mitigated by benchmarking other companies that can be applied to Global Communications.

Concept 1: International Marketing

Until recently, Proctor and Gamble had a policy of waiting to expand a product globally until it had proven itself in the world market. This strategy allowed other companies to benchmark Proctor and Gamble- giving away their products and ideas. Their competition could then take these ideas and imitate them in foreign markets. In addition, P&G was not expanding their customer base; therefore, they were not increasing their profits to the maximum potential. As an example, it took P&G 15 years to produce Pampers on a global level; whereas, if they introduced them today then the diapers would be released to the public in 18 months or less (Ball-McCulloch-Frantz-Geringer-Minor, 2005).

P&G also used advertising to communicate with the cultures they were expanding into. This even included reusing an old commercial from the US for its marketing campaign in Peru because it was an ad that the Peruvians would respond too. After making these simple additions the stock increased an astonishing 60% in value. (Ball-McCulloch-Frantz-Geringer-Minor, 2005) P&G also found new ways to advertise existing product lines. For instance, they found two new customer basis for Head and Shoulders by "...marketing this shampoo to Latino teens. The promotion included an online game surfers could play with others that was placed on Web portals. The effort was so successful that P&G is planning several promotions for other brands including Cover Girl cosmetics." (Solomon, 2004)

There are some risks that are associated with any marketing campaign. Despite research Global Communications could fail to effectively communicate its message with its target nation. Competition could supersede Global's marketing with a more effective campaign. The cost of advertisements could be too much for Global to absorb- making the cost of failure too high for Global to stomach. In order to mitigate these risks, Global Communications needs to find a reliable marketing firm to help them expand. Using the Defining the problem model, on a country-by-country basis, they need to scan the problem, look for opportunities, develop a strategy then implement it in a simple yet motivating way (Maul, 2004). Global also needs to be aware of the reaction to their media campaign in various regions and cultures. The use of fieldwork and independent research in local countries will help to create this awareness. Like Proctor and Gamble, Global Communications may realize that an investment in marketing up-front will pay off in the long run.

Concept 2: Building Effective Partnerships

Over the last decade large telecommunication companies with both more features and services to offer have hurt Lucent Technologies. Formerly a telecommunications powerhouse, Lucent is also selling a somewhat outdated product- telecommunication networking gear. This gear is expensive to produce and difficult to market. These challenges were previously unimportant because Lucent could charge a premium price for their gear; however, this is no longer the case. While still necessary, networking gear does not demand a high price in today's market. The real movers and shakers in the networking industry are application developers such as Google (Rosenbush, 2006).

Lucent has attempted to solve its problems many times- each time failing. For years, Lucent has tried to cut costs and to minimize production expenses but their stock remains stagnant. In another attempt at opportunity realization, Lucent is in the midst of a merger with Alcatel Industries- a French based telecommunications company. Lucent claims that a brighter long-term perspective is the reason for the merger, yet even with it the combined value of the company will be small- a 33 billion dollars combined value compared with Google's market cap of 108 billion. Still, the merger will give the combined corporation more capital and increase its earning power:

As we have said from the start, the primary driver of this combination is to create long-term value for shareowners, customers, and employees...Today we received approval for the merger from Lucent's shareowners, and as a result, we are another step closer to creating the first truly global communications solutions provider with the broadest wireless, wire line and services portfolio in the industry. (Lucent, 2006)

This capital should be enough to pacify Lucent's main stakeholders who have grown weary of their repeated failures. In this respect the 33 million dollars is of more worth than the numbers imply. The company's success conveys to the shareowners, customers and employees (the stakeholders) that the company is secure and on a pathway to becoming a profitable global communications provider.

Like Lucent, Global Communications is also failing in achieving its end-state vision of becoming a global telecommunications powerhouse. To accomplish this goal, Global Communications should benchmark other telecommunications companies abroad. Hopefully, they can find a company with both existing capital and customers to merge with. This would be more convenient for Global than setting up their own locations, which would require property, employees, and customers. Global may even decide to merge with several smaller companies with each covering different countries. In addition, creating effective partnerships helps Global Communications to pacify its worried stakeholders who are concerned with the companies mounting failures.

If a merger is agreed upon than

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