What are some of the key processes in going international? Discuss such processes in the context of internationalizing EMs.

Question

What will be an ideal response?

Answer 1

All companies large and small need to have a well thought out strategy for going international. This strategy should be aligned to a company’s own organizational capabilities and environments and the capabilities of the other organization or company with whom it is building a partnership for entering a specific market. A company can complement its own capabilities with that of other organizations, such as banks, freight forwarders, different government offices, trade associations, and market-research companies. A good alignment among these two capability sources will facilitate the process of going international and formulating an efficient marketing strategy.

Whenever a company decides to internationalize its business, it should reassess its capabilities or strengths and weaknesses and try to find a fit between its capabilities and the internationalization process. This may involve an evaluation of the company’s resources, technology, business processes, and products or services that the company wishes to sell from the target foreign market perspective.

In developing strategies to enter emerging markets, firms need to (a) assess market potential and look at opportunities to access the market and; (b) create a strategy in terms of market entry and establishment. Although each of these steps is critical, the initial assessment of opportunities is especially important in emerging markets. In assessing opportunities, firms can use various techniques such as gathering background information (desk research), evaluating unsolicited inquiries from foreign customers, and monitoring competitor activity.