Global Strategy and ENtering Foreign Markets
Table of Contents
Executive Summary
Often when a company is looking to expand its operations to foreign markets they have an overall goal to create revenue and increase profit. Entering new markets can be an excellent opportunity for companies to utilize core competencies and increase value to the company.
This paper will define global strategy and research the best strategies to use when expanding operations to international markets. Recommendations and conclusions will also be defined for when entering a foreign market, thus expanding operations.
Because of the increased competition in international markets global strategies are more important then ever. When developing a strategy not only does a company deal with lower cost pressures, but also pressures for local responsiveness, and a need to adapt to differences in consumer preferences. This also can change the way the business on a whole is carried out. A company must choose a strategy that will help it best adapt to those pressures, as well as one that stays aligned with its overall strategic goals.
Entering into a new international market seems like a good idea for most businesses, but requires lots of research and planning to be successful. The first decision to be made is what market to enter. New emerging markets with large populations allow for continued economic growth and an opportunity to add value to a product. The timing and scale of entry into a market can be also very important, for many companies in a new market the first mover advantage is one that comes with lots of benefits, including capture of market share. If the company penetrates the market with a significant presence they are likely to send a message to consumers that they are in the market for the long-term.
Selecting a mode of entry into a new market heavily relies on the company’s core competencies, and how much control is desired. For some companies, creating a strategic alliance with a competitor is the best entry
Executive Summary
Often when a company is looking to expand its operations to foreign markets they have an overall goal to create revenue and increase profit. Entering new markets can be an excellent opportunity for companies to utilize core competencies and increase value to the company.
This paper will define global strategy and research the best strategies to use when expanding operations to international markets. Recommendations and conclusions will also be defined for when entering a foreign market, thus expanding operations.
Because of the increased competition in international markets global strategies are more important then ever. When developing a strategy not only does a company deal with lower cost pressures, but also pressures for local responsiveness, and a need to adapt to differences in consumer preferences. This also can change the way the business on a whole is carried out. A company must choose a strategy that will help it best adapt to those pressures, as well as one that stays aligned with its overall strategic goals.
Entering into a new international market seems like a good idea for most businesses, but requires lots of research and planning to be successful. The first decision to be made is what market to enter. New emerging markets with large populations allow for continued economic growth and an opportunity to add value to a product. The timing and scale of entry into a market can be also very important, for many companies in a new market the first mover advantage is one that comes with lots of benefits, including capture of market share. If the company penetrates the market with a significant presence they are likely to send a message to consumers that they are in the market for the long-term.
Selecting a mode of entry into a new market heavily relies on the company’s core competencies, and how much control is desired. For some companies, creating a strategic alliance with a competitor is the best entry
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