Trusted by 2+ million users, 1000+ happy students everyday
Showing pages 1 to 4 of 17 pages
International Business Across Borders
Executive SummaryThe study is based on international business across borders. In order to understand theconcept of international business Woolworth an Australia based company has been taken instudy. It will discuss about the various facts which company should consider while doingbusiness internationally.
INTRODUCTION International business can be defined as a trade of goods, services, capital, technology orknowledge across national borders or at transnational level. Or it can be defined in simple wordsas, cross border transaction of various goods and services. In order to understand the conceptclearly Woolworth will be taken in the study which needs to enter in new market. Woolworth isa supermarket which is a grocery chain owned by Woolworth group. The company was foundedin year 1924. The Woolworth accounts for about 80% of Australian market (Maduenyi and et.al.,2015). The report will highlight what are the strategies which companies use in order to enter inother markets. It will also highlight competitive dynamics as well as organisational structure.The report will also cover knowledge management as well as importance of innovation.Foreign entry strategy: There are number of ways through which Woolworth can enter into foreign market.There are no one such entry strategy which can be proved as best among all. Entry strategiestotally depend on the type of market company wants to enter. Therefore some of the foreignentry market strategies has been discussed below: Direct exporting: Direct exporting can be defined as a strategy in which company direct sells itsproduct in the market which company wants to enter. Sometimes the companies after itssuccessful establishment in the market hires agents or distributors which acts as a face ofcompany and helps company to remain updated with the market (Shafie and et.al., 2018).Woolworth can also perform direct exporting by selling its product directly in the market.As this strategy will help Woolworth to have greater knowledge of its target market as thecompany will have direct contact with the users and retailers. Also Woolworth will have direct orfull control over its product the company can decide the price at which product is sold in amarket and can determine the sales as per trend prevailing in market. Franchising: Franchising can be defined as a process of giving the legal authority to others tosell the products at companies name (Parker, Carey and Scrinis, 2018). Franchising is good forthe business who have a repeatable business model which can be easily transferred to othermarket. Woolworth can use franchising as it will help company to increase its brand name and geteasy access to the foreign market without much difficulty. Franchising will also help company to
Found this document preview useful?
You are reading a preview Upload your documents to download or Become a Desklib member to get accesss