Global Strategy and ENtering Foreign Markets

3761 Words Sep 26th, 2013 16 Pages
Table of Contents

Executive Summary
Often when a company is looking to expand its operations to foreign markets they have an overall goal to create revenue and increase profit. Entering new markets can be an excellent opportunity for companies to utilize core competencies and increase value to the company.
This paper will define global strategy and research the best strategies to use when expanding operations to international markets. Recommendations and conclusions will also be defined for when entering a foreign market, thus expanding operations.
Because of the increased competition in international markets global strategies are more important then ever. When developing a strategy not only does a company deal with lower
…show more content…
As well as being faced with many cost reduction pressures, a company expanding globally is also likely to be faced with pressures for local responsiveness. When doing business in another country there will likely be a difference in customer preferences that will need to be met, differences in infrastructure, and the way of doing business such as distribution channels. Lastly, any demands that may be made by the host government (regulations) must be taken into consideration as well.
These are all factors that need to be considered when a company is contemplating expanding to foreign markets, and choosing a proper global strategy.

Global Strategy
Strategy is defined as any actions a manager takes to attain the company’s goals. The main goal for a company’s strategy is generally to maximize their profit. Due to increased competition in many foreign markets, companies are forced to look at all of these strategies and see which are best for them when moving forward in the global marketplace, to be most successful.
Strategic Choices
A firm will generally use one of four basic strategies to enter and compete within the global marketplace. They are as follows: International Strategy, Multi-domestic Strategy, Global Strategy, or a Transnational Strategy. The strategy a company chooses can depend upon how much it needs to cut costs, and the differences it must adapt to within the new market.
A company choosing an International Strategy works to
Open Document