Going Global Identify the strategies for entering into the global market. Assess the strengths...

Question

Going Global    Identify the strategies for entering into the global market. Assess  the strengths and limitations of each. Give an example of a company that  has made a success of doing business in the global economy. What  lessons from McDonald’s success in the global marketplace are  transferable across industries?

Anuja · Accepted Answer

Global market entry Strategies- Strengths, Limitations and examples
A company, when planning to go global, can do it a number of ways. Let’s discuss each of the different ways with their strengths and limitations.
1. Exporting- this is the most easy and naïve way of doing business globally. The process is simply getting in touch with some other companies present in the country where you wish to business in, and send your products across borders, by paying suitable customs duties. The advantages of this process primarily are that it is risk free and has no external establishment costs. The downside is you have no control on the selling, you have no or minimum brand presence in the country, and your business is not global in the true sense of the term.
2. Acquisition- this is an inorganic way of going global where a larger company tends to buy up a portion or completely another international company to start business there. The benefits are you do not have to start from scratch, you already get some market share and a base in brand recognition. Problems include dealing with the employees, having less knowledge about the market and establishment of one’s own brand equity takes a long time.
3. Licensing- licensing is a good way of averting risk, while creating a base.

Going Global Identify the strategies for entering into the global market. Assess the strengths and limitations of each. Give an example of a company that has made a success of doing business in the...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment