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Friday, 6 December 2013

Chapter 7: Strategies for Competing in International Markets









We will find out how a large company to develop an understanding of the key reasons companies choose to compete in the international market.

In addition, we will also knows to learn how and why market conditions vary across the country, whether developing countries like europe, middle east, asia, etc and make crafts industry's international strategy a complex undertaking.

In this chapter will also given to learn about the key strategic choices to enter and compete in foreign markets, as well as how to gain familiarity with the three main strategic approach to international competition.

The last is one where we need to understand how international companies to go to compete with foreign countries and gain a competitive advantage in foreign markets.



A company must choose among three alternative approaches for competing internationally:
(1) A multidomestic strategy, which is a think-local, act-local approach to crafting international strategy;
(2) A global strategy —a think global, act-global approach; and
(3) A combination think-global, act-local approach, known as a transnational strategy. A think-local, act local, or multidomestic, strategy is appropriate for industries or companies that must vary their product offerings and competitive approaches from country to country in order to accommodate different buyer preferences and market conditions. The think-global, act-global approach that characterizes a global strategy works best when there are substantial cost benefits to be gained from taking a standardized and globally integrated approach and little need for local responsiveness. A transnational approach (think global, act local) is called for when there is a high need for local responsiveness as well as substantial benefits from taking a globally integrated approach. While this is the most challenging international strategy to implement, it can be used when it is feasible for a company to employ essentially the same basic competitive strategy in all markets but still customize its product offering and some aspect of its operations to fit local market circumstances.

That all, thankyou.
Assalamualaikum.

 
 




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