A growing international presence will, therefore, can make it easier in the future to continue expansion opportunities this is because of the increase brand recognition. This will helps a business to be able to employ staff locally. 3. Sales will definitely increase when more customer are introduced to business: - it is rather simple to recruit an international sale force these days. From freelancers to distributorship to the web, marketing can happen at local level better than ever before in almost every part of the world.
This not only allows them to make maximum profit, but also opens up a global market of people with the higher disposable income to buy more goods and services. The improved communication with the help of latest technology has spread widely throughout the world, allowing international business campaigns to be co-ordinated from a fixed base in the domestic country. The internet and other communication medium have opened up entirely new world of business with endless potential. Globalization has changed the people way of shopping, specially by encouraging online shopping from sites like www.flipkart.com , www.amazon.com etc. These online sites are providing best deals to the consumer with a vast number of variety options from global market .Globalization has intensified the competition in the market with the fact that there are many new competitors across the world in addition to domestic competitors.
The opportunity to make profit by selling products in a foreign market is attractive, especially if expansion in the home market is difficult because of slow market growth, market saturation, or regulatory obstacles. In many cases business growth would be possible only through “stretching” the business globally and enter in new markets. International exposure also enables a company to build its international reputation, which is important for the company especially if it is an industry leader. Profitability also depends on competitiveness, so international expansion is a way of reducing costs in a competitive international market. Access to international markets allows increased scale of production, leading to lower cost per unit.
A strong brand will help an organization to differentiate the price from the rest and encourage their customers to pay for the intangible benefits they get from associating themselves with a brand that makes them appear cool fashionable, or clever. In addition, a brand provides a vital differentiator, especially when the basic product or service is widely
Hardy/ Long term Focus Another factor of a strong brand is its ability to have a Long term perspective and being hardy. A strong brand needs to always be looking to the future in terms of goals and products. This is needed to generate awareness, communicate brand values and build long term customer loyalty can take many years (Class Notes 2016). In line with having a long term focus a strong brand needs to be resilient. Every brand will suffer set-backs particularly in the beginning.
• When a firm decides to do international business it faces a lot of decisions. The most basic is making the decision that entering international markets are in the best interest of the company. • There are various criteria used when choosing an international market to enter, they are: proximity, stage of development, geographic region, language , government policies and laws , competitive situation and many other factors. • There are various international entry and expansion strategies they are: exporting, importing, licensing, franchising, inter-firm cooperation and foreign direct investment (FDI). EXPORTING AND IMPORTING • (Czinkota, Ronkainen, Moffett, Marinova, & Marinov, 2005) explains that firms can choose to be involved in exporting and importing in either a direct way or indirect way.
Please develop thorough profiles of the company’s main customers and competitors in that country. The international market place offers a world of business opportunities for the companies which would like to expand their services, operations and products worldwide. The decision to go international is driven by a number of various exogenous and endogenous reasons. The high rate of competitiveness as well as the saturation of local markets urges companies to search for new trade areas. However, entering a foreign market often presents difficulties.
A strong identity of the brand is important as it creates trust in the organization’s service range and provides a differentiating parameter. Internal corporate culture can be improved by internal effective communication and adopting a more customer-friendly approach for branding. Services brands are relation-based both internally and
A companies brand is their experience and results a customer can expect from them. It is also the reputation and promise of value from a company. (Cross, 2010) A brand needs to be unforgettable and memorable for it to be successful such as Apple’s iPhone or iPad as all owners will remember the experience of having one. A strong brand also needs to be unique. They must stand out from the competition.