This chapter is about what are strategies that we have use to compete with the international markets. As we know that international markets are very big. So, there are several reason why that company would like to enter to international markets. The reasons are :
- To gain access to new customers
- To further exploit core competencies
- To spread business risk across a wider market base
- To achieve lower costs through economies of scale, experience, and increased purchasing power.
- To gain access to resources and capabilities located in foreign markets.
So, there are the main reason why the company want to expand their business outside. Before they can expand their business, they must plan their best strategies to compete with the market outside in order to maintain their business.
There are three strategic approach for company in competing internationally.
- Multidomestic strategies : is one in which a firm varies its product offering and competitive approach from country to country in an effort to be responsive to differing buyer preferences and market conditions. It is a think-local, act-local type of international strategy, facilitated by decision making decentralized to the local level.
- Global strategies : is one in which a company employs the same basic competitive approach in all countries where it operates, sells much the same products everywhere, strives to build global brands, and coordinates its actions worldwide with strong headquarters control. It represents a think-global, act-global approach.
- Transnational strategies : is a think-global, act-local approach that incorporates elements of both multidomestic and global strategies.
hH However, there are advantage and disadvantage for these three strategies. So it is depend to the company to manage well for their business outside. ^^ Salam...
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