The Internationalization Of International Marketing

There are many businesses that have expanded their business internationally in order to benefit in some sort of way rather it revenue or a better market for their product. In this thesis, I will research a multination company and its international strategy over the last 10 years. I will elaborate on it international orientation and rather it etho-, poly-, or geocentric. I than explain why the company decided on expanding to the chosen locations. Then I will clarify if they had core capability to succeed in those markets, along with its

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

In this essay, we will examine the internationalisation process of IKEA, Swedish Company founded in 1943 and the world's lieder in supplying home furnishing at low price with imaginative styles and application facility. In addition, we will describe from the different frameworks that have sought explain the Internationalisation process, the factors that have taken this company to perform its international expansion. From to be a simple local shop in a small town in Sweden 60 year ago, to be an actual powerful multinational with more than 76.000 employees and shops in more than 43 countries.

Stages of company Internationalization (Uppsala Model) 1. International Marketing – Ethnocentric Orientation 2. Multinational Marketing – Poly centric Orientation 3. Global marketing – Geocentric Orientation 4. Transnational Marketing – Glocal

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

Internationalisation advantages purely relates to the fact that should it be advantageous to internationalise once all things are considered, it should be done. Thus, Sternquist’s (1997) adaptation of Dunning’s (1981) elective paradigm theory only captures the motives behind internationalisation and whether it is the right idea to expand globally; it does not focus on the strategy firms undertake to enter foreign markets and how they behave once there.

You are required to write an essay in which you assess the usefulness to international marketers of the three theories of internationalization listed below

“The Performance of business activities that direct the flow of goods and services to customers and users in more than one country”

The first topic to be discussed is the idea of globalization. Merriam Webster online defines globalizing as “to make worldwide in scope or application.” Globalization is an important aspect in expanding an organization. Swanson and Holton (2009) state “Multinational companies are taking advantage of economies of scale and scope, proximity to markets and suppliers, and differences in the natural, political, and human resource-related infrastructure in countries around the world in order to achieve and maintain competitive advantage” (p. 421). It is more beneficial for companies to expand globally than to try to continue increasing profits just within their country. Eventually, they will reach a maximum profit that they can make unless they decide to globalize their organization.

Andersson, S. Ingemar W. (2003) Innovative Internationalisation in New firms: Born Globals - the Swedish Case. Journal of International Entrepreneurship, 1, pp. 249–276.

As local business experience rapid growth and success or when they find their local markets saturated, many opt to go global in a bid to ensure that they capture a bigger market share thus increase their sales revenue. However, it is widely recognized that global expansion is not without its challenges especially for small firms, and indeed uncertainties around it have made many small businesses shy away. This paper will examine global expansion as a business strategy so as to determine challenges that may arise when a firm decides to go global and the necessary conditions that need to be in place before a

In 1977 Swedish researchers at Uppsala University came up with a model/theory how businesses should grow their activities in foreign market, this model explains that companies should select an entry mode by taking into consideration their own resources and exploring costs, and risks based on market nature. (Johanson and Vahnle, 2009) Researchers at Uppsala University in their empirical study found that Swedish firms mostly started their process of internationalization by exporting, initially companies had agents that represented them in foreign market, but these firms exported in countries that had little differentiation in culture, language and political systems from their home country, this was labeled in their model as physically close countries. Uppsala Model considers two types of knowledge objective and experience based knowledge, the model describes that after first entrance in foreign market businesses understands how to work in external country, and later they step by step increase level of internationalization to physically distant countries. (Johanson and Vahnle, 2009) But, can Uppsala model be applied to services? This model was mainly reliable for manufacturing industries; a paper with contrary arguments was published in 2008, providing two variables; environment-related and service specific, to question whether Uppsala model can be used for service

The literature on international marketing tactics debates two significant points of view. Some researchers support the international standardization approach argue same marketing strategy, and international markets should use a standardisation marketing mix for reduce total costs and promote a global enterprise image. The companies should use a single entity selling the same items everywhere in the same way (Levitt,1983). On the other hand, some researchers support the marketing adaptation to fit the unique dimensions of each local market. Jeannet (2003) states that the trend towards of international needs should not use standardized international in marketing activities. Because international marketing

When companies decide to enter the international business market they can do so via two different strategies, the multinational and global strategies. These two may seem like they are the same but in reality each strategy is very different. The multinational strategy’s main purpose is to adjust the product being offer to better appeal to the people or place to where it is being offer, while the global strategy does not make that distinction. Using the global strategy means that the same market strategy used in one country can also be used in another country without regard to the place, people or their culture. It may perhaps sound like an unreasonable strategy but when the product you must sell is standard the most important factor is cost; the global strategy succeeds in this regard.

Any company who wants to expand globally and to increase their trade at international must have to face certain challenges related to certain issues such as Economic, political, cultural, and social. The main drivers for expanding the business at international level is increase in the overall growth opportunities rise in the profitability, access to material and human resources and finally innovation.