response 50 words
Born global firms refer to the companies that adopt a worldwide perspective, as well as, engage in international business immediately or after a few years (around three years) from their inception. In other words, the born global firms start with a borderless global view, and develop strategies of expanding themselves internationally immediately after establishment. Born global firms are considered to have multiple unique features which enable them to start, as well as, thrive within the global arena (Epstein & Rejc, 2014). One of the features of such firms is that they focus on exporting, as their major method of entering foreign markets. Besides, the born global firms embrace an innovative culture since their inception such that focus on developing differentiated designs and are able to introduce distinct and customized products or services that target a segment of the global market that had been overlooked by the large international corporations.
Born global firms like Instagram have been able to internationalize from or near their establishment because of stimulating customer loyalty by distinctly meeting certain needs that had been left unexploited by the other firms within the niche markets. Moreover, such firms leverage information and communications technology in order to segment consumers into narrow international-market niches and innovatively meet highly specialized customer needs (Epstein & Rejc, 2014). Some of the advantages that a young firm can gain by venturing international markets immediately after been established include is been able to establish a large customer base within a very short time provided they offer highly differentiated goods or services as compared to the competitors. As a result of the large customer base, such a firm is able to accrue large revenues and make great profits thereby realizing their ROI (Return on Investment) within a short time span.
Reference
Epstein, M. J., & Rejc, A. (2014). Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental, and Economic Impacts. San Francisco: Berrett-Koehler Publishers.
