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International Market Entry and Development

In: Business and Management

Submitted By jzuni411
Words 2135
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Companies globalize in order to target a larger market. With a larger market, companies can increase their profit from the services and products that that would be accessible to a higher number of consumers. To go global, companies must begin with a strategic plan and then move on to full implementation. They must also develop a knowledge base through marketing research to ensure that that the right choices are being made. Companies must also concentrate on market entry through exporting and other low-cost, low-risk international expansions alternatives. With globalization comes great opportunity for growth but also the many challenges of entering brand new markets. CEO’s and marketing executives face marketing decisions that can affect the future of the company for many years to come. They must employ strategic planning to match new markets with products and corporate resources more effectively and efficiently to strengthen the company’s long term competitive advantage (Czinkota & Ronkainen, 2010). Daily decisions then fit into the company’s overall strategic marketing goals. Companies that implement a formal strategic planning process will increase profitability as well as improve various nonfinancial objectives.
The first step of the strategic planning process is assessment and adjustment of core strategy. This begins by defining the business that the strategy is being developed for. Companies must understand exactly the business that is being conducted before moving forward. Once this is done through a strategic business unit which decides on what needs the product would be fulfilling. It is crucial at this stage for the organization to conduct a market and competitive analysis. Through market analysis, companies will be able to understand the commonalties that customers share in the different regions that they compete in. The authors state

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