It takes sequential steps for a company to go into the global market. But even before the globalization process begins, the company must have a very strong product concept and a sophisticated production in its home country. For example, the electronic device named “Walkman” produced by Sony Corporation was a successful product in the early 90s. In fact, the Walkman has been so popular that one may find it in every country in the world.

First, the company must be an export-oriented company. It means that the company has the ability to sell products outside of its home country through local distributors. This allows the company to be recognized globally and the product is sold everywhere in the world. Then, it must be able to set up oversea branches to deal with marketing and sales. The global company must pursue different marketing technique to fit the taste of the local people to optimize sales. Next, as the company reaches maturity whether it wants to expand further or to cut cost; the company must be able to relocate production in key market. This is a crucial part for a company to go global because the risk is very large. On the other hand, a global company also transfers decision-making power to local management. Robert Hass, CEO of Levi’s Strauss, says “the people at the circle will be less and less important since managers from overseas are participating in the management; people who are closer to the product an consumers will be more engaged in making decisions. This leads to another stage, which is called “insiderization.” Global companies must be accepted as citizen in the foreign country, which means that they are nationality-less and is holding an “insider” position. For example, a global company may employ and empower local people to be a leader of the foreign company. When all these requirements have been met, the company will eventually become a global company.