Chapter 7: Strategies For Competing In International Markets

Salam....
In my opinion if we want to expand our companies,we need to brave to compete each other either in the local markets or international market.So,we need to plan a strategies to enter it. For this chapter i would like shares about what have i learned.

The reasons companies choose to compete in international markets are:

• To gain access to new customers
• To achieve lower costs through economies of scale,experience and increase purchasing power
• To further exploit its core competencies
• To gain access to resources and capabilities located in foreign markets
• To spread its business risk across a wider market base

 There have 5 strategic options for entering foreign market:

• Maintain a national (one country)production base and export goods to foreign markets
• License foreign firms to produce and distribute the company products abroad
• Employ a franchising strategy
• Establish a subsidiary in a foreign market
• Rely on strategic alliances or joint ventures with foreign companies

A company must choose among three alternative approaches for competiting internationally

1. A multidomestic strategy or think –local
2.  A global strategy
3.  A combination think –global,act –local approach 

that's all from me,tq