The paper 'Strategy of International Business is a great example of a Business Case Study. The world has experienced rapid development of the internet. This has totally changed the ways of doing things. The advanced technologies have resulted in the emergence of electronic-business firms that conducts their business online. This paper performs a thorough investigation of foreign market entry-mode of these firms. The analysis tries to find out if the prevailing international rules have changed for these companies. The evidence presented in the analysis suggests that establishing country-specific websites is quite insufficient for companies entering foreign markets.
Furthermore, this case uses partnerships as well as foreign-direct-investment as the entry mode. Further to this, the analysis tries to show how strategic planning related to foreign market penetration is ideal in embracing long-term influences as well as the results of the internationalization process. The ability to fully respond to foreign market opportunities and challenges depends on the firm’ s resource-base and strategic foundation which includes international knowledge, skills, experience as well as networks. However, because of their nature, it is always hard to assess these aspects with a view of incorporating them into the strategic planning cycle.
Therefore, taking a broad view of its foundation to international operations, an organization will be more prepared in responding to challenges of the international market-place. The paper compares the propositions given using four important theories of internationalization. These are internalization theory, resource-based view theory, internationalization process model as well as the eclectic framework. In explaining the entry model of the selected company, it is quite inevitable to abandon these theories. In recent decades, globalization has compelled firms to make the expansion of their businesses beyond domestic markets.
Internationalization not only gauges the foreign markets to serve but also how to gain entry. The growing number of theoretical as well as empirical contributions towards global market-entry research depicts the enormous significance of making the correct choice of market-entry-mode since it acts as the sole determinant of the success of the international operation. This means that once a critical decision has been made, it becomes hard to revise it without serious implications of the organization’ s future performance (Kogut & Zander, 2003). One of the main drivers to internationalization is the rapid development of ICT (information and communications technologies) and particularly advanced internet technologies.
The internet has widely facilitated conventional business transactions. It has also offered new ways of conducting business which has lead to emergence of e-business companies. These are companies that are based on redefined business models; that is, the existing or newly created models. Specifically, e-business companies are firms that solely rely on both availabilities as well as the use of the internet, in order to fulfill their unique value proposition related to their business model (Chung & Alccer, 2002). This analysis review the market entry strategy used by e-business companies and particularly ASOS. com, a company based in the United Kingdom.
The Case study describes important characteristics of electronic market space serving as a basis of comprehending internalization behavior related to e-business. Next, study is made on internationalization theories in order to ascertain whether they possess the potential to highlight foreign market entry preferences of e-business, based on past cases. The analysis then concludes with a summary and a brief discussion of the issues highlighted.
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