Globalization by Tom Sheahan

I went global in 1977 and never looked back. The global community creates immense commercial opportunities. The growth in Internet use alone has been spectacular. China surpassed the United States as the biggest user of the Internet in June 2008. The Wall Street Journal reported in January this year “the number of Internet users in China has reached 298 million, nearly equal to the population of the United States.” In round numbers, it’s reported about 25 percent of Chinese use the Web compared to approximately 75 percent of the US population. The report also indicates that last year, “there was also a spike in mobile Web surfing, with 117.6 million users, a 113 percent increase over the previous year. “Internet usage in the China countryside is reported to be growing much faster than in urban areas (“60.8 percent compared to 35 percent in cities”).

International visitors to the FMO Website come largely from Europe and Australasia. Sweden has always demonstrated a strong presence as has the UK, the Netherlands, the Russian Federation, Finland, the Czech Republic, Poland, Australia and China. Occasionally, international shoppers come from India and the US Military abroad. China visitors have increased and in May 2009 showed the strongest presence within the international community. Canada continues to demonstrate strength as well. Globalization has aided our understanding of the marketing and advertising landscape that plays on the attitudes, emotions and motivations of those that access the Website and shop on it.

“Go global, think local,” has been an enormous boost to top-line growth and earnings of US companies. It also presents unique challenges for sales and marketing executives and brand managers. Each country, region or market is like clay. It is molded and shaped by actions of political leaders, entrepreneurs, legislators, regulators, monetary commissions, economists and the media presenting an ever shifting terrain in which to market.

Many associate globalization with the 1970’s, the age of the Clipper Club and 747, many of us enjoyed regularly to access far flung markets. In our organization, a Clipper Club Card became symbolic that an executive had arrived on the globe’s doorstep. It was hand delivered by the CEO with the message “use this to open the door to opportunity and a wealth of new knowledge.”

Globalization was aided and abetted by Pan Am, Northwest, United and TWA but dates to earlier times. For example, basketball went global in 1891 soon after Canadian educator, clergyman and doctor, Dr. James Naismith, invented the game while at the YMCA Training School in Massachusetts. It was exported to China through Christian missionaries attending the YMCA School and establishing missions there. There are now 300 million Chinese of all ages playing basketball and 50,000 retail outlets selling NBA gear there. The sport has become so popular 800,000 new concrete courts are being built or are planned for the country in the next two years. In late May, the Cleveland Cavaliers signed an agreement with an investment group from China to become minority owners of the NBA franchise and its arena. If approved by the NBA’s Board of Governors, the group could acquire up to 15 percent of Cavaliers Operating Company, the entity that owns the team and operates Quicken Loans Arena.

Globalization has many different origins, shapes and success stories. It was born through settlements in other countries, treaties, trade agreements, the media, the transportation industry and initiatives of small and large businesses. It is rooted in the drive for market extension and expansion. The commercial opportunities get more immense by the moment.

-Tom-