Internationalization Theories: Uppsala Model vs Network Theory

Global Marketing & Sales
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Individual assessment
Component 2
Introduction
Every business organization wants to expand their operational activities in other countries
with the aim of generating larger profitability level. In this different strategy of global marketing
is also play a crucial role as it provide a wider area and platform to company in developing their
business activities at market place. This will directly contribute in enhancing the overall
performance of company at market place. In context of this, Paytm is a leading online company
that going to expand their business in UK market in order to increasing their market share. For
this company also use various internationalisation theories that help them in developing its
positive brand presence and also make their performance more competitive.
Critical evaluation as well as comparison between two internationalisation theories:
Internationalization is the method of involving businesses or organizations in
international markets. The idea of organization internationalization is growing rapidly in the
modern world, as many organizations of established and emerging or developing countries are
taking advantage of the ability to carry out their business transactions internationally.
Internationalization is the process of making products and services available on the market
outside the country of origin in which they are made or the region in which they originate.
Business goes international in order to compete for resources that are scarce within their country
and to sell their goods with the aid of the global economy (Coudounaris, 2018). The company
that is internationalizing must improve its position in such a way that it can comply with the
rules and regulations that have been laid down by foreign countries, so that they can perform
their business transactions effectively, in addition to demonstrating the ability to deal with
volatility and the exchange rate and the contradictory policies of those countries. In context of
this there some effective model of internationalisation such as Uppsala model and network
marketing model. Both are effective for company in entering into new market at global level.
Both models can be understood by following description:
Uppsala model:
The cycle of internationalization of Uppsala is a blueprint for the company's selection of
the market and the mode of entry as it moves internationally. The theory was first developed by
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