The paper "Importance of International Strategies" is a good example of business coursework. International strategies are the strategies that many organizations use to expand their business to a wider market. International strategies are applied by organizations to improve their market share by expanding the business into a new market (Cullen & Parboteeh 2010). They help organizations to know what products they should offer and at what market. They are used by organizations to determine what modes of entry into the new market they will use so that they will be able to capture the new market.
International strategies came as a result of the expansion of the global business environment which forces organizations to expand their business operations to new markets. Also, with the improvement in technology, many organizations are able to penetrate into international markets by designing plans on how to achieve the goals by applying modern technology. Technology has flattened the world hence businesses can be expanded globally with ease because of computers software like management information systems which are used for coordination of operations (Hill 2011).
Therefore, an international strategy helps an organization to be able to understand the complexities of the international market like different languages and be able to design plans on how to overcome those challenges and penetrate into the new market. Therefore, this desire to expand the market and stand in a better competitive position has led to many organizations adopting international strategies to expand their businesses. There are five international strategies which are global strategy, transnational strategy, regional strategy, international strategy and multi-domestic strategy. Comparison of International Strategies An organization can apply many of the strategies below to enter into the new market.
A global strategy is a strategy whereby an organization concentrates on centralization of operations and resources in a central place so that it can enjoy the economies of scale of acquiring materials in large quantities. The multi-domestic strategy is the strategy in which resources are dispersed in every place where the organization conducts business. This strategy decentralizes resources and operations and therefore does not enjoy economies of scale like the global strategy (Luthan & Doh 2012). Decisions are made on the local level and not from the central place thus the organizations enjoy decentralization of operations. A transnational strategy is a strategy that applies both global and multi-domestic strategies.
This is a strategy that is used by organizations to coordinate their operations internationally so as to achieve desired cooperation. International strategy is the strategy that guides the operations of an organization internationally and it helps organizations to coordinate the operations globally to achieve profits. Finally, the regional strategy is the strategy that is used by an organization whereby resources are dispersed into regions rather than the central point.
The market is segmented into regions and each region has its headquarter (Mead 2009). The above strategies have the following comparisons. First, the strategies aim at focusing on the customers. The need for using these strategies is to ensure that customers are served better and that their demands are met. The strategies focus on attracting new customers as well as retaining the existing customers so that the organization revenue will increase thus increasing the corporate image of the organization. They focus on how best the customers will be served so that they can be satisfied with services or the products offered for sale.
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