Diversification Of Business In International Marketing

1508 Words4 Pages
bulb-icon

Recommended: Role of culture in international markets

When deciding whether or not your company should takes itself into International Marketing, there are a few considerations that need to take place. You need to make sure that before you even venture off into the country, you need to have done your research. You need to know basic background information about the country and its practices, you need to be well aware of the rituals that the country follows and the way their society runs. South Korea for example, expect that foreigners should attempt to show proper respect to Korean supervisors, and their society is run along Confucian precepts. Typically, your market is going to differ in their country as it needs to be adjusted to suit the culture and its needs. Without adapting your market to these changes, it is guaranteed you will not have as much business success as you would if you were adjust your business to fit to their specific needs. You will need to come up with strategies to help assist you with your managing international business, discover the methods of entering an overseas market and be familiar with elements of the international business environment. 2.0 Suitable Overseas Market To find a suitable market, you should do some background research on the country and how it does business. Diversification of Business is something to take into consideration as it is a technique that reduces risks. It does this as it aims to maximize money return by investing in different areas. Some political risks can include factors such as the government not accepting the way you do business, therefore you need to change your business to fit to its requirements. This also needs to be taken account for with cultural and economic risks as the country you are wanting to collaborate wit... ... middle of paper ... ...sts of a unitary multiparty republic, which is governed by a president, Prime Minister, deputy Prime Minister, and a State Council (cabinet). 6.0 Recommendations Here are five tips to help prepare your business to enter the international market: 1. Educate yourself on the customs and business etiquette of the international market. 2. Gather historical data on the country’s currency value fluctuation and import/export timelines. 3. Become an expert on the country’s laws governing business. 4. Conduct focus groups to test the waters in the prospective international market. 5. Find out what your competition has done in the same territory. 7.0 Conclusion So overall, when entering an international market, you must make sure you know the advantages and the disadvantages, the culture of the country and other aspects that will be beneficial to your business.

Show More
Related

  • Should There Be A Republic In Australia Essay

    968 Words  | 2 Pages

    A republic can be defined as “A state in which the head of government is not a monarch or

    Read More

  • International Bus 540: International Business Entry Modes

    1376 Words  | 3 Pages

    The rise in globalization over the last few decades has helped facilitate and encourage corporations to expand into international markets. This paper will review the five common international expansion entry modes, and the pros and cons of each method. Finally, my employer is in the technology industry and I will breakdown and recommend which entry mode would work best for international expansion.

    Read More

  • Anheuser Busch Essay

    1325 Words  | 3 Pages

    International/Global Perspective Identify global issues relevant to business decisions.? Describe uncertainties about the cultural and financial impacts of moving into new markets and expanding existing markets. Analyze the cultural and financial impacts this company faces when moving into new markets and operating in expanding, existing markets. Discuss unique global customer and supplier demographics.? Identify and communicate the variety of threats and opportunities they face in conducting business in a borderless world. ?

    Read More

  • Child Labor in Uzbekistan

    753 Words  | 2 Pages

    Is a State-controlled System, under the Direction of a President in Power since the End of the

    Read More

  • F&P Gruppo - Gallo Rice

    3441 Words  | 7 Pages

    ice would seem to be a good company to use as an example of the appropriate way to approach marketing in foreign countries. Gallo Rice has been aided in their international expansion by the fact that they have kept an eye on consumer interests in the respective countries they have chosen to operate in. Rather then releasing a single homogeneous product line throughout the world, they have done a good job of adapting to the wants of needs of local consumers. Gallo has also done a good job of keeping track of the individual actions of their major competitors in the respective markets in which they operate.

    Read More

  • The Five Drivers Of Globalization Of Apple Inc.

    1916 Words  | 4 Pages

    When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need

    Read More

  • Hofstede's Five Significant Management Challenges In Global Business Management

    700 Words  | 2 Pages

    Contemporary companies utilize global resources and markets to produce and sell their products. Managing a multinational company is vastly more complex than running a retail store in one location. Operating internationally increases the complexity

    Read More

  • Essay On Global Expansion

    603 Words  | 2 Pages

    Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...

    Read More

  • Critical Analysis of Standardization and Adaptation in International Marketing

    2453 Words  | 5 Pages

    In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in the mind of marketers to understand which strategy is effective and good - standardization or adaptation. There is a significant impact of standardization or adaptation on all avenues of business such as research & development, structure, marketing mix, production, finance and marketing mix. The attitude of a company towards the culture of a particular country in which it is going to enter or start its operations decides to choose between standardization and adaptation. Consider the different views and arguments for each standardization and adaptation, this essay critically analyze which strategy is better to choose for international marketing.

    Read More

  • Global Sourcing

    600 Words  | 2 Pages

    Why would a company go international? There are many reasons why companies would go international, but generally a company goes international so they can seek opportunities in domestic markets, or they seek solutions to problems that cannot be solved through domestic operations. There are many profitable possibilities by going internationally and these include greater profit potential, offers new locations to sell products, it may provide better access to needed raw materials, it may access to financial resources from many nations, and lastly it may allow labour-intensive activities to locate in countries with lower labour costs. For a small business to become an international business they must use five guidelines the first is global sourcing, exporting and importing, licensing and franchising, joint ventures, and wholly owned subsidiaries. The first two are market entry strategies and the remaining are direct investment strategies.

    Read More

  • Starbucks: Foreign Market and Diversification

    1275 Words  | 3 Pages

    Introduction This paper will provide an argument for diversification to be presented to the board of directors for Starbucks. A strategy for diversification indicating the products and industries for diversification and how synergies may be gained. The identification and the discussion of the foreign market Starbucks should enter will be presented, along with the strategy it should use to enter the market. Challenges Starbucks may face in the foreign market will be discussed, as well as how it might respond strategically to minimize the impact of these challenges. Also, this paper will encompass a scenario when it would not make sense for Starbucks to diversify or expand into a foreign market, and how the company will create a business environment conducive to ethical behavior will be assessed.

    Read More

  • External Environment in AT&T

    1814 Words  | 4 Pages

    Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...

    Read More

  • What Would Our Nation Do Without Globalization and International Trade?

    1587 Words  | 4 Pages

    Global expansion has developed a tactical imperative for nearly all large organizations. With this, marketing managers have a great deal on their hands in developing, monitoring and changing these strategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. Strategic imperatives have helped in the development of globalization. Organizations can no longer stand still while their competitors grow stronger. This causes organizations to seek out new markets. Survival is a key indicator for an organization to enter into a global market place. What would our nation do without globalization and international trade? Below is a list of how international trade assists our nation’s economy according to Ellis (n.d.):

    Read More

  • Mcdonalds: An Example Of Product Diversification For Mcdonalds

    1103 Words  | 3 Pages

    This video provides an overview of product diversification. It explains that there are two types of diversification, which are related diversification and unrelated diversification. In addition, the video informs that diversification often involves merger and acquisition activities. Furthermore, it stresses the importance of keeping diversifications balanced, as in some instances, companies that do not take advantage of diversification, can miss out on some benefits, and/or could experience negative effects. However, on the other hand, the opposite could also occur, because some companies that over-diversify, extend themselves too far and can experience detrimental and disadvantageous effects as well. The key is staying

    Read More

  • International Market Selection

    3006 Words  | 7 Pages

    The international business development has heightened the importance of international market selection (IMS) of companies, especially for their exporting strategy. However, not many companies really comprehend the geographical, social, economic characteristics of foreign countries in comparison with their home countries (Cavusgil, 1985). This fact has challenged many studies to create the optimal approach for IMS. The major question is: Which foreign market should a company enter? Thus, this report focuses on providing a practical consultancy to evaluate and determine its most appropriate foreign markets.

    Read More

More about Diversification Of Business In International Marketing

Open Document