International Business Strategy
Success Factors In International Business Strategy
The International strategy should be based on few success factors. These success factors include identification of internal and external environment. Many companies fail to expand globally due to lack of success factors. Lack of customer’s information may be another factor of failure for companies.
The International strategy should be based on increasing firm value. The success of international strategy is based on the identifying strategy to create value in the global market. (Collis, 2014). Business should first identify its competitive advantage before expanding into international markets. Business should also identify market information of the international markets in order to be successful. Diversification is another important choice for companies in order to be successful in international markets. (Johnson, Scholes, & Whittington, 2014). Analysis of firm’s internal as well as external strategy is important for the success of international expansion. SWOT analysis is an important choice for companies in this case.
There are many other tools like PESTLE. Companies fail in internationals markets due to lack of information about international markets and customers choices. It is important to note that international strategy is different from domestic strategy. Theory of diversification should be applied in this case. Companies should identify that what type of diversification in products and services is successful in the market. For example, McDonalds changed its products according to the taste of Indian customers. It applied diversification strategy and changed products from meat and chicken towards vegetables.
In the last, it is concluded that organizations should decide carefully about internationals markets. Choice of the market is the important decision. They should select suitable markets.
Influences Of Globalization On International Strategy Development
Globalization of the companies are influencing the international market to invest in the companies, it is the need of the companies to develop the strategies, which promote their organization internationally; organizations need to design or develop the skills, knowledge and aptitude to compete in the international market. As we studied in the chapter, there are various strategies that could participate in the globalization and international strategies. Example for the competitive advantage a company needs to focus on technological perspective, to see the preferences from customer preferences, should design liberal economic policies, and review the level of economic growth, and from focusing on these perspectives any company could survive in the international market.
For the international competitive advantages, the strategies need to be the advance, which enables companies to attain an appreciation of the complexities in the international market. From the technological perspective every company need to be the advance, PESTLE analysis is best in this way, to control the international marketing functions, companies should have knowledge about what is going on in the global market. In PESTLE, analysis there is information regarding politics, economics, social, technological, legal and environmental. Customers play an important role in the international market, the strategies need to design according to the consumers tastes and preferences because people of different countries have different preferences which needed to be understood by the companies, wants to get the advantage in the competitive or international market. There is the need to identify the best method to satisfy the customer’s needs, demands or wants, for the efficiency organizational objectives should be made or focused according to sources company have.
Influences Of Globalization On International Strategy Implementation
International strategy development is influenced due to globalization. Globalization is playing the important role in the implementation of strategies. Innovation in technology, customer’s preferences, economic policies and economic growth are few influences of globalization on strategy implementation at international level.
Globalization is playing the vital role in the implementation of the strategy. Globalization has improved technologies and innovation. Now every company wants to implement the strategy to improve customer’s satisfaction by implementing the best technology. Globalization has also provided the effect on preferences of customers. Now customers are demanding more variety and quality in products and services. International strategy is based on satisfying Globalization has also improved economic growth. The economy plays an important role in the implementation of strategy at the global level. The structure of business changed from country to country. Company’s implements strategy based on the economy. Globalization has also improved economic policies. It is also playing the vital role. For example, globalization is affecting the mobile industry and each manufacturer is working to provide technological development in its products. (Hill, 2014)
The strategies that are designed or developed in the earlier phase need to implement properly so the effectiveness should be increased, after studying the environment and identifying the need of the market, there is the need put strategies into operation. To implement the strategies it should be known by the companies that the chosen strategies are effective or not and will they bring positive results in the market; the companies that are not influenced by the global strategy implementation can never get success in the market. For the successor for the competitive advantages in the global market; companies need to focus on all aspects discussed earlier.