Global Expansion As A Business Strategy

Expansion is a risky step for any business to take. International expansion has potential to be devastating to a company; or, it can lead to success on an even grander scale. By placing Target in Mexico, specifically Mexico City to begin with, opportunities are created for both the company and the country to grow. This expansion makes sense for several key reasons. One reason is that Target has yet to expand out of the United States. After a failed attempt at moving into Canada, the company has not tried international expansion since. Wal-Mex is the only retail store in Mexico that offers similar products for similar prices, which leaves space for a store like Target. Wal-Mart and Target have also been known to do well in the same areas. Target

While trying to establish international operations, companies are faced with

In an international environment, firm internationalisation is required to compete with other firms. According to Bartlett and Ghoshal (1988), a firm able to control and manage their operations upon expansion will have more chances of success.

When a company desires to expand globally, there are several business decisions to make. The physical expansion can often enough be one of the greatest initial challenges, but then it is followed by cultural adjustments, new laws and borders. In the case study of the Sperry/MacLennan Architecture firm, the company’s desire to globally expand could present problems to implement as by not considering other key markets.

Outsourcing is an important strategy that can help the company to operate the performance better in the core business, which international expansion can make the company revenues come

Companies are able to grow in many different ways. Two of those ways are international

Depending on the culture of every country internationalization can work in their countries of origin but fail in other nations.A foreign culture has values that are neglected in our culture and to find them is very important for the company.

Companies all over the world are beginning to expand on the global levels to stay competitive and increase their profits. The global expansion is made possible through new levels of technology allowing global businesses more efficiencies than in the past. Today businesses are able to electronically view production processes in real time from virtually anywhere in the world, funds are able to be transferred with the click of a button, and a school girl in Tokyo can see the latest U.S. fashions through online channels. Although operating on a global scale creates many new challenges that businesses need to analyze before entering a market in order to reduce profit loss and even failure. Many global companies have had success and failure in the global market place, such as The Walt Disney Company.

There are at least five reasons why the need to become global has ceased to be a discretionary option and become a strategic imperative for virtually any medium-sized to large corporation.

Companies expand into foreign markets to achieve lower production cost and increase competitiveness, gain access to new customers, access the and labor resources, mitigate the risk spreading across larger markets and capitalize the core competencies. Companies gaining competitive advantage are based on many of the complex factors such as location, risks of adverse shifts in currency exchange rates, local business climate, local government policies, cultural differences, demographic, and market conditions that influence the strategy options for the global market.

When a company go internationalized then the market is diversified. So it reduces the risk of any slow down or shut down of a specific market due to any

Doing business internationally had become easier, nowadays business is acknowledged to be international and there is a general expectation that this will continue for the foreseeable future. Before a company makes a decision to expand into foreign markets, careful considerations must be given to some keys factors such as the political and economic environment, costs, benefits and risks. The economic environment can alter from one country to another, this is why they are often divided into three different categories. The more developed, the less developed and the emerging economies.

The marketing strategy pursued by a company is dictated by many factors, including size, product category, competition, and organizational structure. Strategy as defined in the text is “a planned set of actions employed to make best use of a companies core competencies to gain a competitive advantage”. (1) Implementing a successful internationalization business strategy is not confined to large MNEs, increasingly small to medium enterprises find them selves operating in a global market. A business must clearly understand the value added by its product or service to capitalize on their competitive advantage globally. It is useful to consider the internationalization-responsiveness (IR) framework when discussing the key differences between global, multidomestic and transnational strategies. (2) The framework compares the strengths and weaknesses of each strategy relative to the goal of global integration or local responsiveness. In terms of the IR framework a global strategy emphasizes global efficiency, multidomestic strategy emphasizes the local market and a transnational strategy balances both end goals.

Globalization encompasses new challenges to the business industry. Nowadays an organization may face changes and must adapt strategically in order to stay on top of its competitors (Nielsen & Montemari, 2012).

In today’s business world every business houses want to expand their business globally as they want to take the advantage of