logo

Strategic Initiatives for Global Growth Assignment PDF

   

Added on  2021-04-17

13 Pages3091 Words48 Views
Running head: STRATEGIC INITIATIVES FOR GLOBAL GROWTH Strategic Initiatives for Global GrowthName of the StudentName of the UniversityAuthor note

STRATEGIC INITIATIVES FOR GLOBAL GROWTH1Introduction The essay helps in analysing the different strategies that is required to be adopted bydifferent organizations for expanding their business in the international market. The differentstrategic initiatives have to be analysed in an effective manner as this will help inunderstanding the external and internal growth strategies. The analysis of the foreign markethas to be done by the organizations that wants to expand their business internationally. Thesize of market along with economic growth sales has to be analysed. The entry modestrategies have to be conducted on the basis of the kind of market they want to expandinternationally. The main aim and purpose of the essay is to analyse the importance of the scale andtiming of entry. The different advantages and disadvantages of the entry modes has to beanalysed as this will help the companies in understanding the best mode of entry to expandglobally. There can be different kind of challenges along with benefits that are associatedwith acquisitions versus Greenfield ventures that has to be analysed effectively. The scale ofentry has to be chosen by the organizations as this will help them in planning accordingly fortheir future growth. The structure of the essay will include the literature review of the different kind ofstrategic initiatives that has to be undertaken by the organizations. The different analysis ofthe entry mode strategies is required to be done as this will help in understanding the bestsuitable modes to expand their business globally with implementation of strategicalliances(Markman and Waldron 2014). Criteria used by firms for international growth There are different criteria that has to be undertaken by different firms that will helpthem in growing internationally. The companies need to understand the size of market

STRATEGIC INITIATIVES FOR GLOBAL GROWTH2wherein they will be expanding the market along with growth rate of the economies. Thefuture wealth of the consumers has to be kept in mind as this will help the companies inincreasing their competitive advantage in such areas(Grant 2016). The different modelanalysis can be done by the firms as to understand the growth of the firms in specificmarkets(West, Ford and Ibrahim 2015). For instance- Amazon.com has selected the Porter’s Five Forces Model wherein thecompany proves to be completely competitive in nature than the other competitors. Therespective company uses the intensive strategies wherein they develop their products forgrowth of product in an effective manner. Amazon has expanded their business in thedifferent countries wherein they can use the different alternatives as this has helped them indiversification of the existing products in a unique manner. Importance of timing and scale of entry for firms The timing of the entry for the different firms has to be analysed in an effectivemanner as this will help them in increasing their business. The loyalty of the customers alongwith the condition of the market has to be analysed by them. The firms need to decidewhether they should wait to check whether the other firms are gaining some profit fromentering into the market or not(Vedel and Servais 2017). For instance- Flipkart has tried toexpand their business in different countries after understanding the strategies used byAmazon in expanding their business globally. The different importance of the time to entryhas to be considered by the firms to understand the strategies along with models. The entry mode decisions are based on internal factors and external factors whereinthe desired factors have to be analysed in an effective manner. The complexity of the producthas to be analysed to understand the transaction costs along with the socio-cultural and sizeand growth of the market. With the help of Hollensen’s Model, it helps in increasing

STRATEGIC INITIATIVES FOR GLOBAL GROWTH3internationalization and this will help in differentiation of the product(Hill, JonesandSchilling 2014). The organizations need to understand the different size of the firms in thecountry wherein it wants to settle the business as this will help them in gaining internationalexperience. The desired characteristics have to be analyzed effectively as this will help thecompany in solving the complexity regarding product and differentiation in the product aswell in comparison to the competitors in the market. The Hollensen’s model can be adopted by companies as this will help them inproviding the different kind of barriers of trade and different kind of uncertainties involved inthe business that will be set up globally. The entire issues and other problems can be seen inthe diagram below:Figure 1: Hollensen’s Model(Source:Suarez, Grodal and Gotsopoulos 2015)Furthermore, the scale of entry is another essential factor that has to be consideredeffectively as this will help the company in understanding the large and small-scale entry

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Motivations and Challenges of International Joint Ventures in Foreign Market Entry
|14
|4558
|91

Global Strategy for Sustain Growth and Corporate Profitability
|11
|3106
|65

Global Strategic Plan
|10
|2413
|411

International Strategies and Entry Modes for Bellamy's Australia in Japan
|11
|3103
|310

Key Concepts of International Marketing and Market Entry Strategies
|9
|2790
|61

Strategic Marketing for Expanding Business into International Markets
|18
|5195
|49