Internal Growth Strategy
Internal Growth Strategy
Pro
Can expand a competitive advantage and increase market position.
Potential to have returns on different investments.
Con
Does not increase the company size.
Does not increase the company revenue immediately yet overtime.
Loss Strategic focus on the market
External Growth Strategy
Pro
Increase the worth of the company
Immediate return on the companies investments
Con
The Cost of external growth is very expensive.
Which approach is best as an international strategy? Why?
The best approach for an international strategy would be external growth. The external strategy is developed based on different ways to increase the companies net worth. External growth focuses on building multiple relationships with business partners or different franchises in order to maximize their revenue. Internal would not be the best approach because this describes a company investing within their company in order to produce the best product or service. Examples of Internal growth would be trainings for employees, fixing building repairs, or experiments to improve their products.
Exporting - Exporting ships products that's made in it's home country to other countries. This is becoming really popular because of the great amount of small business flourishing out everywhere, and the different technology being used can help increase the need for products.
Licensing - A licensing agreement is made with another firm within the desired country that gives them the right to sell the goods or service. Most well known companies decide to take this route if the don't have enough funds to enter the country.
Franchising - A franchise agreements gives the franchiser the right to open up another company using their name. There are many different franchises such as McDonalds, Pizza Hut, Subway, and Smoothie King. The franchiser has to pay the franchise a percentage of their sales.
Joint Ventures -This entry can be described as the old saying "Two
Pro
Can expand a competitive advantage and increase market position.
Potential to have returns on different investments.
Con
Does not increase the company size.
Does not increase the company revenue immediately yet overtime.
Loss Strategic focus on the market
External Growth Strategy
Pro
Increase the worth of the company
Immediate return on the companies investments
Con
The Cost of external growth is very expensive.
Which approach is best as an international strategy? Why?
The best approach for an international strategy would be external growth. The external strategy is developed based on different ways to increase the companies net worth. External growth focuses on building multiple relationships with business partners or different franchises in order to maximize their revenue. Internal would not be the best approach because this describes a company investing within their company in order to produce the best product or service. Examples of Internal growth would be trainings for employees, fixing building repairs, or experiments to improve their products.
Exporting - Exporting ships products that's made in it's home country to other countries. This is becoming really popular because of the great amount of small business flourishing out everywhere, and the different technology being used can help increase the need for products.
Licensing - A licensing agreement is made with another firm within the desired country that gives them the right to sell the goods or service. Most well known companies decide to take this route if the don't have enough funds to enter the country.
Franchising - A franchise agreements gives the franchiser the right to open up another company using their name. There are many different franchises such as McDonalds, Pizza Hut, Subway, and Smoothie King. The franchiser has to pay the franchise a percentage of their sales.
Joint Ventures -This entry can be described as the old saying "Two