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Strategies for Global Expansion

All firms that operate internationally aim to increase their economic value through international trade. To do so, each firm must develop a strategy to maximize value, lower costs, and boost profits. A firm's value is created through the difference between the value of products sold and costs of production. Value can come from primary activities like R&D, production, marketing, and customer service or support activities like IT, logistics, and HR. For a firm to succeed internationally, its strategy must match the environment and leverage its core competencies, and the firm may need to restructure to reflect strategic and environmental changes.

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26 views2 pages

Strategies for Global Expansion

All firms that operate internationally aim to increase their economic value through international trade. To do so, each firm must develop a strategy to maximize value, lower costs, and boost profits. A firm's value is created through the difference between the value of products sold and costs of production. Value can come from primary activities like R&D, production, marketing, and customer service or support activities like IT, logistics, and HR. For a firm to succeed internationally, its strategy must match the environment and leverage its core competencies, and the firm may need to restructure to reflect strategic and environmental changes.

Uploaded by

Sahriar Emon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Conclusion:

All firms that want to go international have one goal in common; the desire to increase their
respective economic values when engaging in international trade transactions. To accomplish
this goal, each firm must develop its individual strategy and approach to maximize value, lower
costs, and increase profits. A firm's value creation is the difference between V (the value of the
product being sold) and C (the cost of production per each product sold).

Value creation can be categorized as: primary activities (research and development, production,


marketing and sales, customer service) and as support activities (information systems, logistics,
human resources). All of these activities must be managed effectively and be consistent with
the firm strategy. However, the success of firms that extend internationally depends on the goods
or services sold and on the firm's core competencies (Skills within the firm that competitors
cannot easily match or imitate). For a firm to be successful, the firm's strategy must be consistent
with the environment in which the firm operates. Therefore, the firm needs to change
its organizational structure to reflect changes in the setting in which they are operating and the
strategy they are pursuing.
References:

https://en.wikipedia.org/wiki/International_business

https://www.internationalrelationsedu.org/what-is-international-business

https://www.allbusinessschools.com/international-business

https://www.daytranslations.com/.../the-effects-of-cultural-differences-on-global-busin.

https://www.internations.org/guide/global/cultural-differences-in-business-15308

https://smallbusiness.chron.com › ... › Effective Business Communication

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