STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETS

STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETS

Develop an understanding of the primary reasons companies choose to compete in international markets. Then learn how and why differing market conditions across countries influence a company’s strategy choices in international markets. Thus, learn about the five major strategic options for entering foreign markets. Gain familiarity with the three main strategic approaches for competing internationally. Understand how multinational companies are able to use international operations to improve overall competitiveness.

The competing across National borders maker strategy making more complex.

1.        First different countries have different home country advantages in different industries it’s just like demand condition refer to home market size and growth rate such as buyers’ testes. Then firm strategy, structure and rivals are different styles of management and organization refers to degree of local rivalry. Thus, factor conditions are availability and relative prices of input such as materials. Furthermore, related and supporting industries such as proximity of suppliers, users and complementary industries.

2.      Second Location-based value chain advantages for certain countries. Refer to lower wage rates in productivity by value chain and also lower energy costs to maker strategy.

3.       Differences in government policies, tax rates, and economic conditions. Have positives and negative impact of the government policies and economic conditions in host countries. Such as positives sides is low tax rates and negatives sides is subsidies and loans to domestic competitors.

4.      Currency exchange rate risks. Exporters experience a rising demand for their goods whenever their currency grows weaker relative to the importing country’s currency. Exporters experience a falling demand for their goods whenever their currency grows stronger relative to the importing country’s currency.

5.      Differences in buyer tastes and preferences for products and services. To customize offerings in each country market to match the tastes and preferences of local buyers. Thus, to pursue a strategy of offering
a mostly standardized product worldwide.