International Market - Where to establish our company?
Enviado por monto2435 • 30 de Octubre de 2017 • 1.263 Palabras (6 Páginas) • 594 Visitas
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Markets like Germany and Brazil
Germany is the third country (after Mexico) Tequila consuming, as reported consumption of 5, 829,269.47 liters and Brazil consumption of 1, 307,942.64 liters. The logic and appeal of a multinational strategy originate from the occasional differences in conditions in the domestic market, the stronger the need for a multinational strategy through which the company meets its strategic each market situation in the host country approach. In these cases, the general international strategy of the company is a set of strategies used in other countries.
While multinational strategies work best in industries where competition dominates the multinational, global strategies work best for globally competitive industries. The overall strategy is almost the same in all countries. Although there are slight differences from one country to another in order to adapt to the specific competitive conditions in the host countries, the primary competitive focus of the company (low cost, differentiation or focus) remains the same throughout the world. Furthermore, an overall strategy includes (1) the integration and coordination of strategic movements worldwide and (2) the sale in many or all nations where there is significant demand from buyers. The following table provides a point-by-point comparison of the multinational strategy against global. The main strategic problem faced by companies when they compete in international markets is knowing what to look for.
Types of international strategies
Authorize foreign companies using the technology itself or to manufacture and distribute the products of the company (in which case the royalty income [royalties] agreement authorization.
Maintain a domestic production base (a country) and export goods to foreign markets, using either the forward distribution channels owned or controlled company abroad.
Pursuing a multinational strategy, through which the international strategy of a company created country by country to respond wings buyers needs and competitive conditions in each country where it operates. Strategic moves in a country become independent of the actions undertaken in another; coordinating strategy among countries is subject to the need for the strategy of the company in accordance with national conditional.
Follow a low-cost global strategy where the strategy is that the company is a low-cost provider for buyers in all or almost all strategically important markets. The strategic efforts of the company are coordinated globally to achieve a low cost position in relation to competitors.
Following a global strategy of differentiation, where a company differentiates its products from the same attributes in all countries to create an image and a competitive issue uniforms. Strategic moves of the company is coordinated among countries to achieve a uniform global differentiation.
Pursue a global strategy approach, where a company's strategy is to try to serve the same identifiable niche in each of the many markets in strategically important countries. The strategic actions are coordinated globally to achieve uniform market approach in each country.
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