Assessing Strategies for Entering the Global Market: A Case Study of Coca-Cola

Running head: WEEK 5 - ASSIGNMENT: ASSESS HOW TO ENTER THE GLOBAL MARKET
WEEK 5 - ASSIGNMENT: ASSESS HOW TO ENTER THE GLOBAL
MARKET

WEEK 5 - ASSIGNMENT: ASSESS HOW TO ENTER THE GLOBAL MARKET 2
Table of contents
Introduction......................................................................................................................................3
Describing and then evaluating why firms enter the global marketplace........................................3
Researching and selecting an MNC firm to analyze, synthesize, and discuss how your firm
applies any (and all, if applicable) of these strategies for market entry..........................................5
Analyzing, interpret, and discussing what relationships exist between a foreign investor and a
host country government and why are foreign investors important................................................7
Assess and evaluate the impact of the Internet and e-commerce in making an MNC global.........8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

WEEK 5 - ASSIGNMENT: ASSESS HOW TO ENTER THE GLOBAL MARKET 3
Introduction
Since the phenomenon like Globalization companies have looked trading in diverse regions in a
different way. International trade has grown since the globalization emerged. Now firm wants
their presence and operation in diverse countries. Expansion of the companies since the
phenomenon has been enlarged and the business environment and the scene of the global market
changed and become diverse. In the current assessment, there will be discussion over the how
Multinational Corporation approached the global marketplace in changing the environment and
what the strategies used by the company. The assessment also discussed how e-commerce has
played a significant role in making MNC companies Global.
Describing and then evaluating why firms enter the global marketplace
Firms enter into the global markets to enjoy new export opportunities and the growth of their
firms. Companies decide to enter the global market for a different of reasons, and at the time of
entry in the global market, these different reasons need a variety of strategies and performance
goals. Generally, every company follow standard development strategies to enter the global
market. The most common method of market development is referred to as ‘increasing
commitment’ in which a company enter in the market with the help of an independent local
partner (Hanson et al. 2016). This strategy minimizes the risk of companies while they enter the
new market and country. And this will also help companies to build a business in the country-
market as quickly as possible. There are many more reasons why companies enter into the global
market which are as follows:
1. Growth or increase in sales: When an organization enter into a global market then this
will help them to increase their overall revenue. If the company has a unique product or

WEEK 5 - ASSIGNMENT: ASSESS HOW TO ENTER THE GLOBAL MARKET 4
services or any technological advantage which are not available to international
competitors then this will result in their business success.
2. Growth and increase in profit: When a company enters into a global market then there
sales increases and if the sales increases then the profit of the company will also increase
as profit is directly proportional to sales. Because if the company is selling a unique
product or they have any technological advantage then price pressure is far less.
3. Competitive strike: Sometimes a company enters into the global market, not because of
the positive characteristics of the country which was identified in the market assessment
product but because their competitors have moved to that country-market. This scenario
is known as the follower move. In this scenario, the company enters into the new
country-market because a major competitor has done so (Wunderlich, 2016). One more
scenario which was frequently seen is ‘offense as defence’. In this scenario, a company
enter into the home market of the competitors because they have also entered into their
home market earlier.
4. Incentives provided by the government: It is commonly seen that the government
incentivize i.e give cash to their country’s companies to export. Every government offers
a wealth as a help when a company decides to begin exporting and enters into the global
market. To help the companies or exporters to grow their business, Small Business
Administration provide a guarantee loans of $50,000 to $100,000 as an export working
capital program (Cabello et al. 2016).