Submitted by: Submitted by resolute
Views: 57
Words: 1088
Pages: 5
Category: Business and Industry
Date Submitted: 02/24/2015 07:22 AM
Running Head: MARKETING
Why do companies go international and think global at local
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Introduction
Internationalization refers to the process through which an organization expands its operations so as to capture a niche in the global market. Through this process, the organization’s products are modified to fit into different cultures that form the international market. Since the onset of modern technological advancements, many companies are going global so as to exploit this market for varying objectives. This paper seeks to identify the reasons prompting companies to internationalize their operations.
One of the chief reasons that make companies go international is to reach a wider population of consumers. The world population has risen in the recent past to hit the 6 billion mark. Therefore, many business managers are internationalizing their operations so as to make their products and/or services available to this customer population. However, the global population is made of different cultures with people who have different tastes, preferences and varying decision making processes. To understand these markets better, it is essential for the business manager to carry out a thorough research that will enable the company gather vital information (Phillips, Doole & Lowe, 1994).
Secondly, companies move to the international market due to the profit potential that lurks within this market. Operations costs vary with locations. Operating at an international market allows a company to maximize its operations in areas characterized by low operation costs. As these costs are maintained at low levels, profitability of the company increases. Nonetheless, the issues of competitiveness should not be overlooked as the company decides to enter the international market. The market is very competitive and unpredictable. It is therefore important for the company to survey the market properly, analyze...