myz-vgb.ru A Business Encyclopedia

Expansion through Internationalization

Definition: The Expansion through Internationalization is the strategy followed by an organization when it aims to expand beyond the national market. The need for the Expansion through Internationalization arises when an organization has explored all the potential to expand domestically and look for the expansion opportunities beyond the national boundaries.

But however, going global is not an easy task, the organization has to comply with the stringent benchmarks of price, quality and timely delivery of goods and services, that may vary from country to country.

The expansion through internationalization could be done by adopting either of the following strategies:

expansion through internationalization-final

  1. International Strategy: The firms adopt an international strategy to create value by offering those products and services to the foreign markets where these are not available. This can be done, by practicing a tight control over the operations in the overseas and providing the standardized products with little or no differentiation.
  2. Multidomestic Strategy: Under this strategy, the multi-domestic firms offer the customized products and services that match the local conditions operating in the foreign markets. Obviously, this could be a costly affair because the research and development, production and marketing are to be done keeping in mind the local conditions prevailing in different countries.
  3. Global Strategy: The global firms rely on low-cost structure and offer those products and services to the selected foreign markets in which they have the expertise. Thus, a standardized product or service is offered to the selected countries around the world.
  4. Transnational Strategy: Under this strategy, the firms adopt the combined approach of multi-domestic and global strategy. The firms rely on both the low-cost structure and the local responsiveness i.e. according to the local conditions. Thus, a firm offers its standardized products and services and at the same time makes sure that it is in line with the local conditions prevailing in the country, where it is operating.

So, in order to globalize, the firm should assess the international environment first, and then should evaluate its own capabilities and plan the strategies accordingly to enter into the foreign markets.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


asset turnover ratio analysismarket demand curve definitionmarginal rate of substitution economicscrr definitionallport trait theorywhat is meant by elasticityformula of capmafc economics definitionpromotional mix marketingdefinition of suasionarbitrage opportunity definitionlicensing franchising definitioncharacteristics of monopolisticmonpolistic competitionstraight line forecastingdefinition of teleologicalomo marketingwhat is meant by markupmoa of companywhat is involuntary unemploymentdefinition of speculationsmarginal costingphysiological barriers to communicationsnowball sampleconciliator meaningwhat is total assets turnoverbarometricsmonopolistic compimportance of elasticity of demand in managerial economicsmanagement theory by henri fayolconcept of business process reengineeringwhat is the full form of crrspearman rank correlation coefficientsguerilla warfare definitionsemantic differential examplehrm definationfred fiedler contingency theory of leadershipthe law of diminishing marginal utility states thatwhat is production function in microeconomicsdefinition hrmethical thoriesmeaning of uniformity in hindidefinition of inventory turnoverformal and informal communicationfive types of elasticity of demandexample of vestibule trainingcultural factors affecting consumer behaviourdefinition of kioskresonance pyramiddefinition of variable expensesmoral tagalog meaningexample of buzz marketinglikert scale strongly agreespearman rankingformula for acid test ratiomcclelland three needs theoryduality lpinventory turnover ratio definitiontiming for neftmis calculator in post officelegitimate power in managementansoff matirxsamuelson multiplier accelerator modelnarrow hindi meaningconsumer buyer behaviour definitiontruncated chequesbu analysiscost-push inflation may be caused bymonopolistic competition definition economicscost push shockthe term glass ceiling refers togrunig models of public relationsmeaning of probability samplingclassicism theorydiminishing marginal utility explains whyclassical and scientific management theorywhat are decision variables in linear programmingwhat is snowballing in research