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International Managment

In: Business and Management

Submitted By alee33
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Companies decide to go global and enter international markets for a variety of reasons, and these different objectives at the time of entry should produce different strategies, performance goals, and even forms of market participation. However, companies often follow a standard market entry and development strategy. The most common is sometimes referred to as the “increasing commitment” method of market development, in which market entry is done via an independent local partner. As business and confidence grows, a switch to a directly controlled subsidiary is often enacted. This internationalization approach results from a desire to build a business in the countrymarket as quickly as possible and by an initial desire to minimize risk coupled with the need to learn about the country and market from a low base of knowledge. A few of the more wide-spread reasons are provided below:-

Discuss why companies “go international” giving specific reactive and proactive reasons.

Moriom, I totally agree with your post and I would like to add some more points that in our increasingly global society, many companies cannot afford to live with the illusion that their domestic markets will always be strong. For this reason, many companies choose to expand to overseas markets. By taking risk to go into international markets, a company can offset seasonal fluctuations in sales and increase profits in general through exposure to a greater number of prospects. Further, technical proficiency is often increased by expanding into markets with a greater expertise in certain areas of technology.
Reference:
http://goodluck4ever.hubpages.com/

By taking a venture into international markets, a company can offset seasonal fluctuations in sales and increase profits in general through exposure to a greater number of prospects. Further, technical proficiency is often increased by expanding into markets with a greater expertise in certain areas of technology. In addition, expanding into foreign markets can minimize a company’s risk of losing market shares to customers who themselves take advantage of the Internet to look for suppliers of goods and services in foreign markets.

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