Strategy of Internationalization of Enterprises. The choice of research strategy depends on the goals of the organization, but also on its own markets dictate some rules.
1. Market Segmentation
The original meaning of the market segmentation is the identification of the target consumer groups regardless of geographical area. This means that international marketing often provides an additional dilemma: explore the target national, regional or global market or explore the market segment consumers. The choice of research strategy depends on the goals of the organization, but also on its own markets dictate some rules. Namely, the richer and more developed markets in which show the growth of income and increase of education diversify and consumers. This means that segmentation on such markets is more desirable method. In such markets comes the specialization of business entities and focusing on a particular market segment of consumers. Definition a certain segment of marketing researchers must respond to 3 questions:
Who makes a segment
what are the basic needs of the segment
how to meet the needs of the segment
In the initial phase, segmentation also implies determining rationality the process as the segment may be insufficient in size and therefore it does not depend on labor and expense. Along with the above aspects, segmentation also includes competition analysis. In the final phase of segmentation involves creating marketing mixes and controlling the funds spent. So, to make a consumer segment interesting and make marketing specially justified for him, it must be:
Big enough, that is, profitable
Merciful, that is, definable
The wider meaning of segmentation can be viewed through two concepts.
It is a basic micro-segmentation based on customer characteristics and expanding
macro-segmentation based on the characteristics of the countries.
2. Internationalization Strategy
After the research and analysis the company should determine the type of strategy by means of which they will be presented to the non-market. That strategy depends on how
the characteristics of the market or segment to which the company accesses, as well as the ones it owns curator and power companies. There are basically three basic alternatives:
3. Export strategy of entry into the market
Exports are considered to be the fastest and easiest way to go abroad market. Production in general remains within the limits of the domestic market, and part sales are being posted abroad. It is important to note that marketing access to exports is something completely different from the classic export business. Namely, the export marketing starts from the needs of foreign customers, a not from the previously provided product or service that it offers. Export variant entering the foreign market is very diverse and diversified. Three basic the export strategy groups are: basic, partnership and related. basic export variants can be either direct or indirect depending on who appears as a broker or seller on a foreign market.
4. Cooperative Entry Strategies
Co-operation is established instead of competition and confrontation. Most common the forms of this type of strategy are licensing and franchising agreements. It’s a contract
transfer of rights to use certain goods, technology, innovation, know how. The second variant of cooperative strategies is functional production-oriented cooperation. Characteristic forms are: contract management, contract manufacturing, co-operative montage production, long-term production co-operation. The third variant is co-operation on the project principle through participation in investment and development projects.
5. Investment Strategies Typical examples of investment strategies for internationalization of enterprises are:
grinfild, braunfild, joint ventures, mergers, acquisitions, international strategic alliances and others. This kind of strategy they employ mostly large multinational companies financial and organizational potentials. The basic advantages they provide direct foreign investment can be raw (access to cheaper raw materials), costly (cheaper production cost), or deeper or easier penetration into the market. Foreign investments provide an opportunity better market research, and better business control. It is important to mention that direct investment abroad in the firm continues to operate as domestic that allows it to overcome state and consumer resistance, along with getting tax relief. Unlike grinfild investments that imply investments in the icehouse, acquisitions and mergers imply the takeover of control over the existing ones companies. Merchants are usually a much heavier way of investing and imply exchange of securities without the use of cash.
6. Managing Business Abroad
Today ‘s business environment is characterized by the process of globalization and economic liberalization. These processes encompassed most states except a smaller number that hardly research on the principles of socialism social organization and / or economic nationalism. Globalization process it is characterized by the growing linkage of national economies, creating that the way a multidimensional network of economic, social and political entities that function on the principle of “connected courts”. It can to point out that today’s business environment is global a competition that requires each participant to approach strategically making business decisions. Failure or negation of the changed competitive environment, which is is characterized by radical, turbulent and hard-to-predictive changes to competitive inferiority. The new business environment is on the one hand created an abundance of business opportunities while, on the other hand, healed competition and company exposure to various types of risks. On new the business environment of the companies reacted through internationalization activities, trying to exploit the featured business opportunities, and forming a network of strategic partnerships for active risk management. The largest number of states that had a very restrictive attitude toward foreign investments are after major socio – economic and political changes during the 2000s of the last century, liberalized the regulation for foreign investors. This once “unavailable” market has suddenly become available to foreign investors. Many of these countries continue to do so are characterized by high political and social risk. And besides significant exposure to political and social risk are noninvestors in these markets invested hundreds of billions of dollars. Investment decisions are preceded by detailed exposure analysis as well as policy management and policy development social risk. One of the measures within the management strategy
political and social risk represents a partnership on investment fundamentals. Partners through this route divide the necessary divisions of financial assets for investment, which significantly reduces exposure risk. By merging company information, knowledge and contacts they create a better pool for joint risk management.
7. Developing strategy for positioning companies abroad markets
Every product or service must have a clear position on the market. The position in consumer thoughts is a complex set of perceptions, impressions and feelings by which one product differs from the other. Companies are struggling to position the situation, but they are already creating marketing strategies they provide to their products or services the biggest advantage in the chosen target market. Positioning strategy creates consumer preference for the product and consumers and facilitates choices products. For this reason, every company raises the question: “Why does the target consumer group purchase or not buy a product or service? ” Companies must choose the ways in which they will differ and highlight from the competition.
Each difference must meet the following criteria:
– Importance (high-quality convenience),
– highlight (offers the product in a better or different way),
– Inability to easily copy,
– possible affordability i
The positioning strategy follows when the company determines where target market wants to work. After that, he determines the position he wants to in the market. The company’s offer consists of a combination elements of a marketing mix that strives to meet the desires and needs on the market. Every product strives for competitive positioning.