INTERNATIONALIZATION

Internationalization of ABC Company

Table of Contents

Introduction3

Discussion4

Process of Internationalization5

Offer, Pricing and Branding8

Product/Service Offer8

Pricing9

Competitor Analysis10

The Consumer10

Objectives10

Target Market11

Segmentation12

Branding12

Differentiation Strategy13

Entry Mode in the International Market13

Standardization Strategy14

Management and Organization15

Management Issues and Style16

Reasons of Ignoring Cultural Differences17

Control System19

Processes of Overcoming Cultural Differences19

Conclusion20

References24

Internationalization of ABC Company

Introduction

Globalization has totally transformed the human life and organizational performances. Globalization is the process of global economic, political and cultural integration and unification. Globalization is the process of pulling the world economy, more recently understood as a collection of national economies, interconnected system of international division of labour, economic and political relations in the market and the close intertwining of their economies on the basis of transnationalization and regionalization. On this basis, it is the formation of a unified global network of market economy - and its geo-economics, infrastructure, the destruction of national sovereignty, which was the main actor of international relations for centuries. The process of globalization is a consequence of the evolution of market systems designed state (Achenbaum 1993: 89). For this purpose, it has become necessary for almost all companies to operate in their own locality first, and when they have enough control over their area of origin, then they must go national and then international. This is the need of the time and the demand of customers; otherwise in this highly competitive environment it becomes almost impossible to survive (Sackmann et al. 2004: Pp. 370-390).

The organization that has been chosen for advice it on the possibility of participating more actively in the national and global market is ABC Company, which is an international company that provides luxury goods in the UK and two other markets. We have assumed that the company is currently operating as the Luxury Brand. It is a private firm operating in different cities of the country and two different locations in the world that are US, and Australia.

The following essay will discuss the Process of Internationalization. Also, we will be discussing the key strategic decisions that the company can take to cater the international market. In addition, Offer, pricing and branding will be discussed. Further, Management and Organizational issues will also be analyzed.

Discussion

Internationalization

The extension of business beyond the borders of country of origin corresponds to the phenomenon of internationalization of economic activities. To internationalize, company may use different means:

Export

Direct exports: the company markets its own products abroad either by Internet or through a sales force located in the importing country.

Indirect exporting: the company continues to manufacture in its home country, but sells part of its production abroad through specialized companies.

The export associated markets: companies with the same country and similar activities can come together and form groups of exporters by establishing common ways of prospecting and sales.

The distribution network abroad: the internationalization of power is a system of organization, administration and government in which a group of states is needed, because of their economic importance, political, military, demographic and geographic internationally; internationalize activities, policies, and diplomacy.

Process of Internationalization

Internationalization is the process of expansion of a firm's products in a number of overseas markets as ...