Discussion: International Market Entry Strategy
Many firms face a lot of challenges in entering the international market. However, globalizing a company remains an important decision in extending its territory and gaining a competitive advantage over the others in the same field. The main reason behind the company’s entry in the global market is to win a significant market share for its products and hence its survival by making vast amounts of profits. Different firms have varying reasons for entry in the international market; some are decision policy while others are a reaction upon a particular market opportunity as well as a competitive issue. However, it should be noted that the significance of this decision is often a proactive one other than just a reaction.
Some of the vital decisions for entering the international market include exporting, franchising brands, partnering, joint ventures, company buying, turnkey solutions, piggyback, as well as licensing. Among all the strategies, franchising is the easiest way to enter into the international market. It involves the mere creation of a successful brand. Exports include both direct and indirect. The most common one is direct exporting, as it is pretty simple to initiate. It involves selling directly to the market a company wishes to break into, and partnering up consists of getting a foreign business partner in an international state. A joint venture entails a partnership between two people or firms. The other one is the purchase of a foreign company, which allows a firm to enter the global market more efficiently. Turnkey solutions involve contracts that are usually given by the government to a particular firm. Piggyback is about selling a product to local companies that have an international presence who, in turn, take your products globally on request.
Replies
Abraham Hamid
The video is rich in information on the approach to take in entering the international market through export business. Exporting products is one of the most straightforward strategies to adopt by any firm in its entry to the global market. It involves little in terms of policies necessary for a company to qualify for exporting commodities to other states. The fundamental issue is a valuable addition to lure consumers of your products from other countries. Through exports, a business manages to extend its operations to oversee boundaries. The outcome is gaining a more significant market share at the internal market and hence the success of the company.
Monica Anne Marzan
I agree with you that Amazon is among the world’s biggest companies. The company offers a variety of products as well as services to its customers all over the world. The organization has managed to enter into the international market through e-commerce platforms. The online site has played a significant role for many companies to sell their brands abroad quickly. Many of the firms have used continuous social sites to reach a global view. This has been the simplest way to sell companies’ image and dealings with the worldwide market. This way, many businesses have easily penetrated the international market without many struggles.
Joyce Montague
Entering the international market is indeed surrounded by several factors that require informed decision-making techniques. Moreover, to extend business in the global market, huge capital investment is necessary. The cost comes into play in the form of product marketing financing, surveys, and agreeing with foreign nations. However, the bigger view of the undertaking is more beneficial to the company as compared to the cost of engaging in the international business. The extension to oversee market allows a firm to increase its sales and commercial activities and hence high-profit margins and growth of the organization.
Marie Bradshaw
The reality, as you say, is that the international market is a new commercial operation era of modern companies. It is the highest time that every company globalizes its operations to meet the standards of the world product quality. Firm managers should be open-minded to establish a market for their products to the world other than restrict themselves to domestics operations. The survival of a company is its ability to take advantage of every opportunity available. One significant opportunity today is reaching the consumers in a global market to ensure more market share for its products. International trade is more rewarding in that it has a constant customer for purchases of any company products.
Moises Aguisanda
Your video helps understand the strategies necessary for a company to enter into a global market. It reveals that there exist different approaches to international market entry. A company can adopt more than one as long as the strategy aids in successful participation in the worldwide business. A significant reason for admission in the global market is to gain a substantial market share and hence increased profit margin for the firm through huge sales volume. Tiktok has revealed a digitalized approach to entering into the global market. This proves social sites remain the modern platform for brand sale in a more comfortable and fast way.
Wendy Finlay
I like the point raised about the modern versus traditional brick and mortar strategies of entry in the international market. It is worth noting that changing technology has dramatically influenced current business in the world. The change in technology goes hand in hand with the difference in people’s tastes and preferences. Companies must, therefore, be flexible enough to meet the changing needs of society. It is thus difficult for a company to succeed in entering the global market without considering integrating its commercial activities with the recent technologies. Every company is bound to take the new strategies necessary to ensure customer satisfaction in a global market, not just in national reach.
Moises Aguisanda
I agree with you that Tiktok is a social media platform that has come to evolve the way people exchange ideas ultimately. It is entertaining and, at the same time, offers an opportunity to sell an idea, product, or even services to a global view. The platform is more comfortable to interact with and has several features capable of advancing the current way of doing business among people in modern society. It is a site that has extra advantages to the companies that will commercially take advantage of it to sell its image to the next world. Business people should not just see it as a fun site but as an avenue to sell their brands.
Gemiah Famela Bunquin
Airbnb entry into the international market is an excellent way through which several other companies should take note of. The aspect of language translation helps a firm to reach different communities in the entire world quickly. This, therefore, makes it easy to sell firms brand to may as they understand what the organization does soon since it has been translated in their language. The first step for any organization to extend its operation beyond national boundaries is brand selling. Every organization is thus trying to come with any method that will easily allow it to reach the international community wisely and friendly.
Marie Bradshaw
Different companies adopt varying approaches to enter the international market successfully. International Business Machines Corporation (IBM) is one of the companies that have a good reputation for its product development in the world. The company, with many others, sues its brand name to continually extend its operations and hence gain a competitive advantage over its competitors in a global market. Business structure and management indeed affects its ability to extend to other states easily and less costly. Companies need to take advantage of available resources or opportunities to enter into international commercial activities. This can help firms to save a lot of cost of the brand selling to global society.