Posted in Marketing and Strategy Terms, Total Reads: 6656
Definition: International Strategy
In marketing and strategy, the market of operation is a very crucial parameter. Thus, a company operating in India cannot employ the same strategies should it want to expand to Russia. So for a company seeking international foothold, framing of an ‘international strategy’ assumes a very crucial role. To prepare such a strategy, a five step method can be followed. The process is schematically represented and enunciated below.
The first step in forming an international strategy should be analysing the markets, in general, if not specifically. This will include analysis of general macroeconomic data of the country, balance of trade, trading partners, per capita income, etc.
Next, the company should identify the resources for its international expansion. It is obvious that not all products will fit in all markets. Also for greater profits, resources with higher competitive advantages must be selected.
The third step is setting the international and global objectives, which, counter-intuitively is not done in the first step. The reason is that objectives should be stand-alone and misfits to the market in question. So a prior market analysis is necessary.
The subsequent step should be deciding the market entry and mode. The company may choose routes like launching of a brand new product or venturing jointly with another willing partner company, already present in that market.
The final step in this process is development of the service offering which will encompass details like pricing, products and distribution.