Technology Trendsetters Look Beyond Homeland For Growth
BANGALORE: Pulled in by the high demand of internet access and online services in the developing countries, the tech giants like Google and Facebook are set to go deeper into the overseas markets in the near future, reports the Times of India.
"The philosophy is to start your growth in the states and then take your fight overseas," says BGC Financial Analyst Colin Gillis. "That's what the big guys are doing."
It seems that, Google has generated about 58 percent of its revenue outside U.S. in the second quarter and Facebook has already generated close to 55 percent overseas and attracted close to 1.1 billion in the foreign markets compared to the 200 million in U.S. and Canadian markets.
There are other companies like Coca-Cola and Ford motors anticipating to make more money in other countries including, the fast growing countries like India and China. Ford motors is already building four new plants in China and two in India, where it hopes to contribute one-third of its sales in the market. On the other hand, Coca-Cola is looking at expanding itself in the countries where the company’s products are yet to be well established than the U.S. market. Coca-Cola also says their per capita income has increased way more in India and china than it did in the U.S and this helped the company’s growth by 3 percent.
However, according to General Motors CEO Mary Barra, the big companies feel the need to keep pushing in their brands in other countries though the consumers may not make enough to afford their products for now.
"As the market grows, we need to participate in that growth...in a disproportionate fashion to make sure that we are seizing the opportunity," Barra said.