Tesco motives for international growth Internationalization motive of a firm could be proactive or/and reactive - Albaum et al. (1994, p. 31). Proactively the major drives include opportunity in foreign market, desire to grow profit, technology competence and market intelligence. Reactively, is the saturation of domestic market, excess capacity and strong competition in local market driving down profit; all these factors are the motives for Tesco expansion into International market in order to gain presence. Initially, Tesco Plc did not have any hypermarkets in the UK but it expanded its international operations by opening hypermarkets abroad.
Merging with another company that already has a global foothold is one promising way of accomplishing the mission. Currently BW/IP only has a firm pump market in the United States, and there have been little attempts to reach out internationally. Creating a new department to focus on these goals will require too much capital and human capital that the BW/IP doesn’t have. Rather, it would more efficient to merge with a company that already has experience with working abroad. This will widen the range of customers, letting BW/IP focus their attention away from an already dominant US market and towards a larger international market.
Why did IKEA go international? Before starting to analyze IKEA’s internationalization, let’s consider on the question “why do companies go international?” Generally, companies go international for a lot of reasons, but the main ones are company growth and profit making as well. In order to be succeed on international market, it’s very important point to define the international strategy. If to define the international strategy: an international strategy is when a company hires a strategy through which its goods and services are sold out of its local market. Enlarging into international markets allows potential opportunities to companies.
Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and
Staging choices typically reflect available resources, including cash, human capital, and knowledge. At what point, for example, should Walmart have added international markets to its strategy? Perhaps if the company had pursued global opportunities earlier, it would have been able to develop a better sense of foreign market conditions and even spread the cost of entry over a longer period of time. However, by delaying its international moves, the company was able to focus on dominating the US market, which is—after all—the largest retail market in the world. Despite mixed results overseas, Walmart is the undisputed leader in global retailing and has recently increased its emphasis on international markets as the basis for future growth.
1.1. Background Over the last decades, the increasing globalization of the manufacturing and distribution companies have driven significant changes regarding their business environments. Being one of the main drives behind these changes, globalization leads to a more affordable international market but also to a dramatically change in the competition situation between emerging and developed nations as well as between companies (Moavenzadeh et al, 2012). Jeffery (2002), made an approach regarding the meaning of it, saying that ‘’Globalization can be seen as a positive, negative or even marginal process’’. He further states that despite the fact if it works for good or not, its exact meaning will continue be the subject between those who oppose,
What are the benefits that the company will gain from expanding its operations into the international market? What is the meaning and concept of International Business? Why the business organizations decide to go international? What is International Business
It has been observed that firms stars the internationalization process by chosen a mode of entry to culturally and similar countries. However, other researchers argue that the longer a firm waits to initiate international activities, the more difficult it will be to grow internationally, and Internationalization can be perceived as a part of ongoing strategy process of most business firms (sharma and Blomstermo, 2003). The different between internationalization and other type of strategy processes are: (i) when product, services or resources are to be transferred across national boundaries, the firm has to select the country where or with whom the transactions should be performed. (ii) The firm has to select the international exchange transaction modality, i.e. a foreign market strategy (Andesen and Buvik, 2002).
Because Thanh Thien knows that international trade will be more risky and costly than doing business at home, so we consider the cost and profit as doing international business. As the beginning step, our company choose Exporting as an entry strategy, including: direct export and inderect export. Because exporting will be proper way for us to enter new market, have better profit and reach customer quicker. After looking for market information as well as customers' tastes and reactions to our products. Then we can change or adjust our flavor of tea to match customers' tastes and ulitilize proper management in different culture country.
Marketing should be done within the boundary of a country and also outside the country depending on the reach of the product. Therefore to reach the international customers it is necessary to have an international marketing. To keep a firm functionally productive international marketing is important. International marketing is a part of market expansion plan. International marketing had several advantages which helped the firm in various ways.