Today I want to explain our next topic on for this chapter 7 Strategies for Competing in International Market. Generally, when you learn this topic,you will get to develop on understanding of the primary reasons companies choose to compete in international market.However,this topic objectives to learn about the five major strategic options for entering foreign markets.
Globalization is forcing companies to do things in new ways – Bill Gates – Founder and Chairman of Microsoft
Once a company decides to expand beyond its domestic borders,it must consider the question how to enter foreign markets.There are sic primary strategy options for doing so :
- Maintain a national (one-country) production base and export goods to foreign markets
- License foreign firms to produce and distribute the company’s products abroad.
- Employ a franchising strategy.
- Establish a subsidiart in a foreign market via acquisition or internal development.
- Rely on strategic alliances or joint ventures with foreign companies.