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Book/movie review
22/08/2022
Please a response to the statement below and no more than 180 words and internet references only. Thank you
From this session, I learned some of the strategies companies use to compete in international markets. The home market is saturated and emerging markets are offering opportunities for most companies in developed countries. Companies also seek international markets for diversification of business risks and for lowering their cost of production. Some of these strategies include; exporting, creating a wholly-owned subsidiary, franchising, licensing, and creating a joint venture or strategic alliance. All these options have their merits and drawbacks and business executives must choose which best fits the desired market taking into consideration factors such as initial cost of entry, how much risk is involved, and what share of the operation’s profits the firm gets to keep. Some multinational companies adopt the same home market strategies while entering international markets. For example, Amazon’s strategy of “think global act local†accounts for its success in international markets such a Germany, India, Mexico, and Brazil but encounters a storming block in China. Thus there is no guarantee that a unique strategy will succeed in all markets. Cultural differences, political instability, managing global teams, currency fluctuation, and inflation rates, and differences in legislation are some key challenges these firms encounter in international markets.
The writer is very fast, professional and responded to the review request fast also. Thank you.
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