go go INTERNATIONALE!!

 بسم الله الرحمن الرحيم

Asslamualaikum and gud day to all.. its me cik tkah again.. jus yesterday I post about S.M subject n today I will post bout it again unfortunately. ..so, what can I do, I have delayed it bout 3 weeks, by hook or by crook or by anything I need to finish it as fast as my hand can type..hehe

Last entry we have peel (kupas) on how to strengthen the company’s position right..ok, continuing from that, today I wanna share on the topic of strategies for competing in international market.. Once we have a business and the business have expands locally, of coz we have the desire to go worldwide and generates more profit. But to do that we need strategies or the business will suffer more lost.

Why companies decide to enter foreign market?

1) gain access to new customer

2) achieve lower cost through economics of scale, experience and increased purchasing 

3) exploits more on its core competencies

4)gain access to resources n capabilities located in foreign market

5)spread its business risk across a wider market base

To set strategies to compete internationally is a lot lot lot harder than locally. Why?

1) Different countries have different home-country advantages in different industries. The company can use the Porter’s Diamond of national Competitive Advantage to identify the major factors that contribute to the competitive advantage of certain countries.(its Porter’s again..always him..why ha??is there no other person that n develop S.M framework like him?..kekeke) ok don’t mind that.

2) existence of location-based advantages to perform different value chain xtvt in different parts of the world

3) varying of political and economic risk in different countries

4) company face the risk of adverse shifts in exchange rates when operating in foreign countries

5) differences in buyer’s taste and preferences in different countries make it’s hard to customize and standardize the products and services

What are the strategic options to enter and compete in the international market?

v  Export strategies-maintain a national production-base and export goods to foreign markets

v  Licensing Strategies-license foreign firms to produce and distribute the company’s abroad. Works well for manufacturers n owners of proprietary technology

v  Franchising Strategies-best to be employed by services and retailing enterprise

v  Foreign subsidiary strategies-Establish a subsidiary in a foreign market via acquisition or internal development

v  Alliances n Joint Venture Strategies- rely on strategic alliances or j.v with the foreign com. bcoz they understand well the buying habits, customer preferences, distribution channel relationships n so on in that particular country.

What are the 3 main strategic approaches to compete internationally?

1) Multidomestic Strategy- Think Local, Act Local

2) Global Strategy- Think Global, Act Global

3) Transnational Strategy a.k.a Glocalization- Think Global, Act Local.

Ok, it is a brief explanation from me. If there are any further inquiries, kindly refer to the Crafting and Executing Strategy: The Quest for Competitive Advantage (Concepts and Cases) copyright by McGraw Hill Education…keke..wassalam~

MAY ALLAH BLESS US ALL TODAY AND ALWAYS