Uppsala Model and Introduction to Internationalization

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.

The internationalisation process of the firm has been a subject, which has been motive of study for a number of

produce products and sold to multi country. The primary purpose of business internationalise is seek a wider range of competitive advantages and integrate resource in order to profits maximization. The Internationalization motives include three

Exporting has become a very important business strategy nowadays. In order for firms to expand to the international market, and also to maintain and grow their share of market in whatever industry they are in, depending on their goals and objectives, any company must at least explore this possibility. A few and important advantages might come into place, in that they can extend their sales potential of their existing products, increasing margins through a larger customer base. Also, these small to large businesses can consolidate by gaining global share of market, they can reduce their dependence on their existing markets,

In recent decades, internationalization has been more and more common in over the world. This is a great opportunity and challenge that many businesses can earn a lots new experiences and practice themselves when they work in a new environment. Also, internationalization is a good way for companies expand their power and reputation. So these companies or organizations might improve themselves with new knowledge which they learn from foreign countries in order to gain more profits and benefits.

With every market-entry strategy there are always going pros and cons. First, with exporting, varies companies, from small to

The third theme of IBUS6008 has concentrated on the core concepts of: what activities might firms come down to at the pre-export stage and what does export readiness comprise? Why are some firms eager to pursue and expand their international markets?

There are multiple motives for international expansion. Some are strategic while others are reactive. An example of a strategic or proactive motive is to tap foreign market opportunities or acquire new knowledge. An example of a reactive motive is the need to serve a key customer that has expanded abroad.

According to G. Rocher, internationalisation refers to different exchanges as economics, politics, cultural, between nations. The

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

For many firms, seeking for new countries’ markets is the mainly attempt to spread their products or services into the foreign markets, and the firms will retain and construct their participation in present markets to increase their worldwide competitive force (Doole and Lowe, 2012, 218; Hollensen, 2007, 5).About market , there is no perfect market entry plan and different market entry methods might be adopted by different firms entering the same market and/or by the same firm in different markets (Bukley, 1985).

Depending on (other factors), there are other strategies that could have been chosen when entering the global market. Exporting merchandise can be conducted directly to other nations as well as indirectly; this option is more suitable for companies that have established business contacts within that foreign area to have a better chance of producing international sales and turn a profit. Like indirect exportation, a firm has a relatively low amount of risk involved and financial investment as there is no development of any new plants necessary to enter the new market.

Globalisation has enabled many companies to venture abroad in an attempt to grow their market presence while also boosting profitability, acquire cheaper raw materials, and gain access to low cost of labor.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

These large MNCs are based almost exclusively in advanced industrialized countries; ninety-nine of the 100 largest firms are from the United States, Western Europe, or Japan and more than 5/6ths of all parent corporations are based in