7.formulating international-level strategies.
Foreign markets provide both opportunities and potential dangers for companies that want to expand globally. To decide which entry strategy is most appropriate, companies have to evaluate the trade-offs between two factors that firms face when entering foreign markets: cost reduction and local adaptation. To achieve competitive advantages, firms will typically choose one of three stategies: global, multidomestic, or transnational. When evaluating international-level strategies, you might ask:
- is the company's entry into an internation markeplace threatened by the actions of local competitors? If so, how can cultural differences be minimized to give the firm a better chance of succeeding?
- has the company made the appropriate choices between cost reduction and local adaptation to foreign markets? If not, how can it adjust its strategy to achieve competitive advantages?
- can the company improve its effectiveness by embracing one international strategy over another? If so, how should it choose between a global, mulidomestic, or transnational strategy?
7.formulating international-level strategies.
Foreign markets provide both opportunities and potential dangers for companies that want to expand globally. To decide which entry strategy is most appropriate, companies have to evaluate the trade-offs between two factors that firms face when entering foreign markets: cost reduction and local adaptation. To achieve competitive advantages, firms will typically choose one of three stategies: global, multidomestic, or transnational. When evaluating international-level strategies, you might ask:
- is the company's entry into an internation markeplace threatened by the actions of local competitors? If so, how can cultural differences be minimized to give the firm a better chance of succeeding?
- has the company made the appropriate choices between cost reduction and local adaptation to foreign markets? If not, how can it adjust its strategy to achieve competitive advantages?
- can the company improve its effectiveness by embracing one international strategy over another? If so, how should it choose between a global, mulidomestic, or transnational strategy?
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