SEEKING INTERNATIONAL BUSINESS

WHY AND HOW TO GO INTERNATIONAL..

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Reasons to seek international markets

  • spreading risks and not dependant; recession
  • global sourcing
  • increase brand awareness
  • improved communication and transport
  • economies of scale; lower unit cost
  • saturated in domestic market
  • increased competition
  • increases sales
  • bettr profits and higher revenue
  • extend product life cyle
  • limited growth in domestic market
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HOW TO GO INTERNATIONAL. 1 Internal

INTERNAL STRATEGIES

Exporting

  • simpling selling to customers in other countries . eg ebay, avoida need to establist operations abroad

Direct investment

  • set up production, operations in other countires, and distrbution networks, but is expensvie

E-Commerce

  • Selling via the internet and buyinng
  • amazon
  • reduces risk
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HOW TO GO INTERNATIONAL .2 External

Joint venture

  • firms share investment costs, risks, returns

Strategic alliances

  • firms pool resources for a shared project, no new business is created

Franchising

  • Selling a license to other firms allowing them to sell their product

Mergers + take overs

  • firms may agree to amalagamate to gain access/buy majority share
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PROBLEMS WITH GOING INTERNATIONAL

Legal Issues

  • different legal systems with different approaches to
  • patents, competiiton, consumer protectionm employment, barriers to trade, such as tarrifs, quotas, embargos

Language and cultural differences

  • ignorance of local languages and customers can create problems with marketing
  • fartfull table by ikea

local knowledge

  • awarness of local business etiqueete as well as local consumer tatse
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