Sixth Entry :Strategies For Competing In International Markets

As we enter to new country, we need to adapt their weather, taste buds, culture and customs. Same as if a firm’s enter to a new company. They need to adapt to the local environment for instant, local taste and customs, local government laws, local franchise operation and local service quality. They need to practice to practice the local specialization precisely, like being done by McDonalds.

Why companies decide to enter foreign markets?

To gain access to new customers

To achieve lower costs through economies of scale, experience, and increased purchasing power.

To further exploit core competencies

To spread business risk across a wider market base.

Home countryà origin country

Host countryà foreign country

Why Competing Across National Borders Makes Strategy-Making More Complexes??

It may cause due to currency exchanges rate risks. However the taste buds and preferences of product and services on the host country are different. In addition, the differences in government  policies, tax rates, and economic conditions would also affect the period before a firm can the host country.