Internationalization is generally defined as the intrusion of business into foreign markets and different economic geographies. This international presence can take many forms and be realized by several possible strategies. Indeed, if the internationalization of enterprises is unavoidable in most activities, it requires method, reflection, diagnosis before action. It is not possible to internationalize before the company and its various services have taken some preliminary steps essential to its international development.
Moreover, the international strategy has more than any other character sequence. It is a process that develops over time through a series of strategic moves that relates to the choice of target countries of international development, the choice of products and services that are emergency vehicles in the internationalization of this portfolio company's strategic corporate plan and ultimately the choice of entry strategy and conditions for development of the international presence. In this work, this study will try to answer the following problem: what are the internationalization strategies available to a firm?
Geographic diversification is that the company is no longer content to its domestic market and leaves others to conquer international markets.
This can be for the firm to sell or produce these new markets for existing products on which it has accumulated some experience, or conversely, to address new markets with completely new products.
Internationalization is not globalization.The IMF defines globalization as "the growing economic inter-dependence of all countries, caused by the increasing volume and variety of cross-border transactions in goods and services, as well as international capital flows along with the rapid and wide spread diffusion of technology." Globalization is a permanent feature of the development of a society.
The role of multinational enterprises in the international economy is of major importance. The world has more than 37,000 multinational corporations that now control over 25% of global GDP, 9% produced by their subsidiaries abroad.
Multinational companies control more than a third of world trade and more importantly, play a role in the geographical allocation of productive capital, through their location decisions.
As for the host countries, multinational firms play an important role in the economy of these countries. They are the largest employers and leading investors.In addition, they incorporate some functions of the State in many countries, they finance the costs of research and development and also bear the costs of protecting the new technology.
In some Japanese multinationals, there is an internal police and expensive security systems. In concert with governments, multinational insurance fund for its employees and medical services and some educational services.
Generally, the functions involved are essentially the marketing and / or production. Must be determined with great precision and structural changes in procedures that will be performed on all functions of the value chain and especially those above the top, and who will accompany the degree of internalization for which the company opt. They also define the level of investment required for a centralization of production is justified (if significant potential economies of scale), or a relocation of production.
The formulation of the international development strategy depends crucially on the overall strategy of the company. These are actually the strategic directions and objectives of the company defining the objectives of its international policy in this case the degree of international openness and targeted geographic areas.
Tags: Internationalization, strategies for internationalization, development strategy
[...] How then continue to generate exceptional performance? The answer to this question brings us to adopt the third strategic approach: that of "shaper". According to scholars, shapers focus on a specialized expertise. The point that differentiates them is that, while specialists provide products or services specified by their customers, the formers are able to develop an original, on which they have global leadership. In this way, they managed to occupy a dominant position, around which their clients should be structured. [...]
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[...] According to this grid, the company can arrive at three conclusions: ¬ Scenario NO The weaknesses of the business are too important and its international potential is too low. She must avoid exposure to international risk. ¬ Scenario YES WITH RESERVATIONS The company has some shortcomings, but these are surmountable problems, leading to a potential international average. It must implement solutions that will enable it to correct weaknesses. ¬ Scenario YES The company has no major weaknesses which might prevent its export and international potential. Export is possible in the short term. [...]
[...] Multinational companies control more than a third of world trade and most importantly, play a role in the geographical allocation of productive capital, through their location decisions. As for the host country, multinationals are important in the economies of these countries. They are the largest employers and early investors. In addition, they incorporate some functions of the State in several countries; they finance the costs of research and development and assume the costs of protecting the new technology. In some Japanese multinationals, there are internal policy and expensive security systems. [...]
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