Case Study on International Business

Added on - 21 Apr 2020

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Running head: INTERNATIONAL BUSINESSINTERNATIONAL BUSINESSName of the Student:Name of the University:Author note:
1INTERNATIONAL BUSINESSAnalysis of the case studyThe strategies undertaken in 2004 were appropriate as per the time, the multinationalenterprises has to beat the competition in the Chinese market, where the big companies likeMotorola already decided to increase their investment. In international business to survive thelocal players is a big challenge (Williamson & Zeng, 2004). Discussing about the first strategyin which the many multinational companies entered the high end market, entering a high endmarket means not targeting the market that have the maximum number of customers, penetratinginto the market targeting the middle class would have been the most appropriate strategy(Armstrong et al., 2015). The strategy of reducing the cost can be said was one of the mosteffective strategies, once the cost is being reduced then the price of the products will also bedecreased thus making the product or service attractive to price sensitive customers (Cavusgil etal., 2014).RecommendationsIn 2001, the companies missed one of the most important strategies to enter the foreignmarket. In order to enter a foreign market in partnership with the local players would have beenone of the most effective strategies. Collaborating with another company would have reduced thecapital for entering the foreign as well as risk of failure of expansion strategy. Joint ventures areone of the most commonly used strategies for entering a foreign market. Buying a Chinesecompany could have been another effective strategy that would have helped the companies tohave a good market share from the very beginning (Jagersma & van Gorp, 2003).
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