The number of companies operating internationally is increasing at an alarming rate in the recent times. Due to high competition there is a larger task for the companies which are based abroad.They should analyze the advantages and disadvantages before entering the market. Culture, politics and few others are the obstacles faced in foreign markets.
Before entering the foreign markets it is important to make a profile of potentials such as:
1. Distribution channels for the product for which one wants to launch
2. Nature of competition in the market
3. What is the market outlook for the product or the service in a country
4. Consistency of growth rate
5. Are there distributors who can market your product
6. Incentives offered by the government
[...] There are some general advices the company always must have in mind before and during a co-operation on the international market. If the first impression becomes negative, this can be hard to shake. Foreign cultures have different ways of doing business, for example when it comes to planning ahead and keeping delivery times. want to be a good Frenchman in France and a good Italian in Italy. My strategy is to be global when I can and stay local when I must” Eric Johansson, President of Electrolux Methods of exporting Exporting can be achieved by selling your product to a foreign firm directly or indirectly through an export intermediary or trading company. [...]
[...] Sell excess production capacity: companies who have excess production for whichever reason can sell their products in a foreign market but cannot be forced to give discounts or dispose the excess production. Gain knew knowledge and experience: going international can give new and valuable ideas and information about new technologies, new marketing techniques and foreign competitors. These gains can help the company foreign and domestic business. Expand life cycle of product: products go through various cycles like introduction, growth, maturity and declining stage which is the end of their usefulness in a specific market. [...]
[...] Marketing information: finding information on foreign markets is undoubtedly more difficult and time consuming than finding information and analyzing markets in the domestic arena. Reliable information on business practices, market characteristics, and cultural barriers may be unavailable in less developed countries. Entering an export business requires careful planning, some capital, access to quality product, competitive pricing strategy, management commitment and realizing the challenges and opportunities. Without them it is almost impossible to succeed in the export business. While there are no hard-and- fast rules that can help companies make decision to export and to become successful, understanding the advantages and disadvantages of exporting can help smooth entry into new markets, keep pace with competition and eventually realize profit. [...]
[...] To make a mark in the international market it is important to make a mark in the domestic market. This is done by being competitive in domestic market. This helps them acquire some strategies which help them succeed. Gain global market shares: companies which participate in the global market, gain their share of in the international market arena. Diversification: selling goods to multiple markets diversifies the company's business n spreads their risk. By doing so the company will not be tied down to the domestic market of a specific country or place. [...]
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