You are required to write an essay in which you assess the usefulness to international marketers of the three theories of internationalization listed below
Uppsala Model
Network Model
Born Global Pathway
Matteo Fabbi
University of Westminster, UK
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Several studies have focused on theories of internationalization since the raid of globalization hit every aspect of our life and organization as much. The advancement of technology, the decline of trading barriers, the rise of students exchanges programs, yet the rise of low-cost airline companies, is driving the economy to become more integrated and homogeneous. This rapid process is getting
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Also Johanson et all. (2004) and many other authors have also shown that the Uppsala internationalization process is not valid for service industries.
The acquiring of knowledge is an important factor in evaluating the usefulness of the theories in analysis. If looking at the high-technology industry, products have very short life cycle and must be internationalize in a very short time if they want to be successful in the international market. Companies working in this type of industry achieve a faster internationalization process by relying on the expertise and knowledge of network partners (Hollensen, 2006).
The Network model is very useful to create innovativeness, by matching different organizations with complementary skills, by outsourcing the manufacture to overseas-based firms, technical services, and even marketing and distribution. The entire supply chain can benefit from the network model of internationalization, creating competitive advantage for the firm. Even in this particular case, SMEs have to face the big challenge of dealing with bigger organization with greater managerial and coordination skills, plus the resources to invest, although the strengths of this approach to SMEs lies on the importance of the personal factors.
According to Hollensen, an entrepreneurial orientation towards seeking
1. Should he pay the “commission” and, if so, to whom? Explain your reasoning. If he pays, how should he handle the situation with the sales manager and the vice president of sales? In your answer, include a discussion of the arguments in favor of paying and the arguments in favor of not paying.
International And Business-to-Business Marketing Business markets are "markets for products and services, local to international, bought by businesses, government bodies, and institutions, for incorporation, for consumption, for use, or for resale."[1] In business marketing, the customers are organisations, (businesses, governments, and institutions). An organisation is a group of people pursuing a common aim through co-ordinated activities, organisations are characterised by structure, activity and goals.[2 ] The search for improved quality and superior performance has spawned a significant shift in the purchasing practices.
Throughout the 1400s, slavery started when three continents; North America, South America, and Africa, forcely exchanged 10 million africans to the Americas. This broad idea of expanding labour through slavery affected the world. For example, Anthony Hazard discusses how this “impacted not only the African slaves but the economy and history of the world” (The Atlantic Slave Trade). It all began when there was not enough servants to help produce essential needs in the Americas.
The information I collected in this paper is mainly from network as well as books available at Library. I found most information in electric sources, like E-books, E-journals, etc., by a wide on-line research. Beside, books in related to international marketing at Library also helped me a lot. By going through a couple of marketing books and journals, I managed to find some extremely useful information.
Swedish researchers Johanson & Vahlne developed a model based on a research of foreign dedication by observing patterns in the establishment chain, psychic distance and product diversification and identifying that knowledge and learning have a profound impact on how the firm is seen to approach foreign markets.
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
Since the mid-1980s, the changing global competitive environment have forced more and more multinational corporations (MNCs) to development worldwide learning as their competitive viability, which requires to create worldwide innovative processes and knowledge transfer (Bartlett and Ghoshal, 1989). Knowledge from a subsidiary could be transferred to both parent company and peer subsidiaries, helping MNCs realize worldwide learning (Miao, Choe and Song, 2011). Knowledge flow from a subsidiary to parent firm could be considered as a critical condition to facilitate “local-for-center” innovation processes (Bartlett and Ghoshal, 1989, cited by Miao, Choe and Song, 2011). Traditionally, MNEs develop innovative capabilities by two classic processes, including “center-for-global” and “local for local” innovation model. Specifically, utilize the centralized resources and capabilities of parent company to create new products and operations and then implement these to subsidiaries, which could be defined as the central innovation process. By contrast, in the local innovation process, based on the local customers’ needs and market environment, subsidiaries development new products by their own resources and capabilities (Bartlett and Beamish, 2014). Based on different strategic roles and organizational specifics, the knowledge transfer includes two types, which are vertical and horizontal way. Horizontal knowledge flows in the multinational enterprise are generally adopted
Internationalization of the business nowadays apparently became a trend for the organizations to expand their market position and gain the competitive advantage among their contemporaries. The extent and nature of business activities are almost as diverse and comprehensive as the totality of the social and economic interest of a man. Various business activities acknowledged the opportunities that the internationalization may deliver. Through their ability and capacity to expand their business operations, internationalization is highly possible. For most of the time, the high degree of the competition under the umbrella of an industry and the number of competitors that are engaged in the
The practical studies focus on identifying that internationalization was regular or incremental process .The internationalization process is study focusing on attitudes and behaviors of firms in market that are in the process of internationalization. The practical studies focus on identifying that internationalization was regular or incremental process. Some observations are also made on de-internationalization that point towards the flexibility seen in the duration of the internationalization process.
As this essay has already hinted, the fundamental decision that a company has to take regarding the internationalization of a product when entering in a foreign market is adapting a product to the requirements of the foreign costumers or utilizing a standard product. To make this choice, two different logics are set against each other: the production logic that wants to increase the productivity through a standardization of products; and the marketing logic that wants to create each product in order to specifically satisfy all local needs.
On the other hand, The Network Model emphasizes the importance of relationships formation and building upon the growth and internationalization of firms (Ojala, 2009; Collinson & Houlden, 2005). Johanson and Vahlne (2003) argued that “distance” can be decreased as a result of trust building, experiential learning and individual relationships. Additionally, Hollensen (2004) found that some of the firms enter distant markets at an early stage as internationalization process grow speedily. Unlike Uppsala Model, it is believed that building a long term and stable inter-organizational relationships will impact on foreign market selection and expansion pattern of the firm (Axelsson and Easton, 1992) and these relationships act as bridges to new markets (Ojala, 2009).
It is important for a company to choose a relevant internationalization strategy in order to attain competitive advantage. According to Philip Kotler and Gary Armstrong, a company can attain competitive advantage when the company is able to perform in one or more ways that competitors cannot or will not match (Philip Kotler, Gary Armstrong, 2007, p182)
In economics, internationalization is the process of increasing involvement of enterprises in international markets, although there is no agreed definition of internationalization.[1]There are several internationalization theories which try to explain why there are international activities.
This report is basically concerned with the phenomenon of International marketing. At its simplest level it can be said that
In the text International Business, globalization is defined as the “acceleration and extension of the interdependence of economic and business activities across national boundaries (p 3)”. Many multinational corporations manufacture products in different nations and selling internationally to different nations. With the constant flow of goods and service help the integration of economies and societies. Since the recent boom of technology has boosted the pace of the integrations of the global markets and became a powerful component of globalization. Many key components that are can be successful or downfall of international globalization; such as