One might say that there is no right theory to use but the mixture of them which makes the process easier. Theories and models provide tools to plan the internationalization process of firms. There are numerous factors that shape and influence the internationalization process of SMEs. From the U-model, psychic distance and market knowledge are still able to explain some behaviors expressed by the process of internationalization of SMEs, while almost all firms tend to construct their foreign endeavor on networking, for gathering market knowledge and information in particular; SMEs depend intensely on network relationships. Firm’s and management’s chance searching for behavior is another impetus for foreign expansion with a fundamental component of these activities originating from past international experience of owners or managers or entrepreneurs.
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.
This might lead to significant cost reductions and efficiency increases. Moreover it offers the feasibility to implement a benchmarking procedure between the suppliers as well as between external partners and Swedwood. Of course some tensions and a conflict of interest could emerge, owing to the circumstance that many of the information are very confidential and companies do not want to share them. Suppliers could fear that they would lose too much room for negotiation and feel used. For this reason it is essential that IKEA clearly states to their suppliers that this step is crucial in order to improve the competitiveness of the
Outsourcing is a common theme that increases the programmer’s time for brand products to reach the shelf. IT technology is able to streamline the process and overcome significant inefficiencies at the interfaces. The color management trend report states: “people want global applications in international networks and platforms that
This new chip can decreased the sales revenue in a short term because it seems to be unnecessary for customers who already owned the computer with this effective chip. However, if the company not promote this chip, sales revenues will remain stable, unsurprisingly. Therefore, if we apply the utilitarianism to this case, it is certain that the happiness of customer is the highest priority. In other words, the manager should select the choice that will ensure the happiness of most customers (Chryssides and Kaler, 1993). For this reason, there is another involving factors that need to be considered: how happiness can be
It is necessary that they know what the features are. They will also usually go for products that are specifically designed for the purpose and are unique. Advertising on the other hand, does not usually work for generation X, as they think it is not transparent enough for what they are signing up for. Give generation X sufficient information and educate them and lead them into buying would be a better way. Treat generation X as a consultant rather than a customer or seller.
Another advantage is that selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit. Other advantages related to economies of scale include improved research and development, marketing operational costs, and lower costs of investment. Finally, following a standardized approach helps companies aim focus on a uniformed marketing mix specifically focusing on one single product, leaving enough room for quality improvement. Choosing this approach will give a company a strong identity of brand and reputation. Another factor is that when adapting to global standardization, corporations have a competitive advantage in cost and effectiveness; they view their companies as a whole-as a one entity and not as a group of different national markets, unlike the multinational
International trade is the exchange of capital, goods and services across international borders.. This type of trade gives rise to a world economy, in which prices or supply and demand are influenced by global events and factors. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes. In many countries it is the major source of national income and facilitator of international relations.
Maruti Suzuki was successfully able to adapt the new technology. They started giving the advertisement on Facebook, YouTube etc. There is official site of Maruti Suzuki in which people can easily visit the site and can get the whole knowledge whatever they want. With new advertising strategies it directly has created a super impact on the mind of the viewers. There were modification in the visibility level of the advertisements through social media.
Q1. Critically analyze and discuss (using each factor of PESTLE model) the impact of globalization on banking sector in your country. All the organizations need to consider carefully the macro-factors that have impacts in major business operations. Although there are some factors that are not directly controlled by the organization, yet they need to be analyzed for the better functioning and building the strategic plans. A very common tool/method used for such purpose is PESTLE, stands for Political, Economic, Sociocultural, Technological, Legal and Environmental factors.