THE SURVIVAL CONDITION OF LOCAL
ENTERPRISE IN ECONOMIC
GLOBALIZATION
1
Prepared for Cleveland Smith, General Manager of XXXX
Prepared by Tong Hu
April 5, 2015
LETTER OF TRANSMITTAL
TO: Cleveland Smith, General Manager of XXXX
FROM: Tong Hu
DATE: April 5, 2015
SUBJECT: Analyze the Adverse Effect of Economic Globalization on Local
Enterprise
Here is the report you requested April 1 on the weaknesses of local enterprise in
economic globalization.
As the progress of economic globalization, business is not just limited to local. More and
more powerful companies begin to involve global market, it allows customers to have a
much wider range of products. Therefore, loss of customers have become to a big
challenge to local enterprises. There are three weaknesses of local enterprise lead to loss
of customers.
The purpose of this report is to analyze the weaknesses of local enterprise in economic
globalization and the methods to overcome weaknesses. To achieve the purpose, I am
going to discuss from three areas: produce technique, product competitiveness, and
promotional channels.
I have appreciated the opportunity to research and report on such a significant topic.
If you have any question about this report, please feel free give me a call. My phone
number is (540)XXX-XXXX.
2
CONTENTS
Page
List of Illustrations ……………………………………………………………………… iv
Executive Summary ……………………………………………………………………… v
Introduction …………………………………………….………………………………… 1
The Weaknesses of Local Enterprise in Economic Globalization ………………..………. 2
High Product Costs …………………………………………………………………………………………….. 2
Saving of labor force ………………………………………………………………………………… 3
Saving of raw material ……………………………………………………………………………… 4
Deficient in Product Competitiveness …………………..………………………………… 4
Conformity with customer needs ………………………………………………………………… 7
Backward Promotional Channels ………………………………………………………… 7
Conclusions …………………………………………………………………………….. 10
Recommendations ………………………………………………………………..…………………………… 10
References …..………………………………………………………………………….. 11
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LIST OF ILLUSTRATIONS
PAGE
FIGURES
1) Net sales figures for Apple for 2003-2013 ……………………………………….1
2) Nokia’s Smartphone Market Share from 2010 to 2012 …………………………..6
3) Nokia’s Smartphone Sale vs Apple & Samsung ………………………………….6
4) Growth from 2014 to 2015 ………………………………………………………………………….8
5) Trend of American’s news sources from 1991 to 2012 …………………………..9
TABLE
1) Worldwide mobile phone sales in 2010 and 2011 ………………………………..5
4
EXECUTIVE SUMMARY
This report analyzes the weaknesses of local enterprise in economic globalization
and the methods to overcome of weaknesses.
The Weaknesses of Local Enterprise in Economic Globalization
With economic globalization, many world-class enterprises involve the market.
They came with lower sale price and better product quality. Most of market shares has
been cut by these enterprise, but market demand still stay the same. Therefore, the market
competitive pressure rise sharply. Compare with world-class enterprises, local enterprises
have three weaknesses lead to loss of customers: high product costs, deficient product
competitiveness, and backward promotional channels.
High Product Costs
The first weakness that lead to loss of customers is high product costs. The
