Impact of globalization on model of competition and companies' competitive situation

Abstract

Globalization has changed the competitive environment of companies. This paper aims to contribute to understanding the changes a company can face through analyzing the impact of drivers and effects of globalization on the models of industry competition and the company value chain. The boundaries between the forces of competition are fading as economic globalization has led to a new dynamic in the competitive situation where companies and activities of the value chains change places between forces and impact and interact with each other in new ways. The boundaries of companies and their core can and are being redefined. As this potential evolves through offshoring, outsourcing and value chain fragmentation, the pressure of competition forces a continuing and increasing move in this direction. © 2012 IFIP International Federation for Information Processing.