Strategies for competing in foreign markets

1.

Strategies for competing in foreign markets
(Chapter 7)
Why companies expand into foreign markets
To gain access to new customers
To achieve lower costs and enhance the firm’s competitiveness
To capitalize on its core competencies
To spread its business risk across a wider market base
WIUU Business Policy, 2017. J. Bentz

2.

Strategies for competing in foreign markets
(Chapter 7)
Factors that shape strategy choices in foreign markets
Cross country differences in culture, demographic and market
conditions
Ability to gain competitive advantage based on where activities
are located
The risk of adverse exchange rate shifts
The impact of host government policies
WIUU Business Policy, 2017. J. Bentz

3.

Strategies for competing in foreign markets
(Chapter 7)
Strategy options for entering and competing in foreign markets
Maintain a one country production base and export goods
License foreign firms to use the companies technology or to
produce and distribute the company’s products
Employ a franchise strategy
Use strategic alliances and Joint Ventures
Set-up local affiliates maybe incl. production
WIUU Business Policy, 2017. J. Bentz