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BUSINESS INTERNATIONALIZATION STRATEGIES

JULIETH STEFANIA CASTAÑEDA PEDRAZA

Created on April 27, 2023

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Transcript

BUSINESS INTERNATIONALIZATION STRATEGIES

TYPES OF STRATEGIES

export strategy

INTERNATIONAL BUSINESS COOPERATION AND DIRECT INVESTMENT ABROAD STRATEGY

Strategy of projects in foreign markets

import strategies

NEGOTIATION STRATEGY

WHAT IS IT?

it is a process that

WHAT IS IT?

they focus on

They are divided into

Direct investments abroad

involves a variety of skills and strategies

International cooperation agreements

helps to manage the market sectors of the main activity

expanding the business of a company abroad

Focus your resources

It allows the purchase of goods or services from a foreign country to expand the supply of its products and reduce costs.

Lorem

Lorem

due to

they are divided into

allows you to provide answers and quality service

cOLLABORATION BETWEEN TWO OR MORE COMPANIES

what is it for?

political factors

expand internationally

COMPANIES SHOULD

cultural differences

Construction of a plant Implementation of a technology system

ACHIEVE MUTUAL GOALS

Creation of a strategic alliance

for whom?

THIS IMPLIES

economic factors.

USEFUL FOR COMPANIES LOOKING TO

plan how to deal with additional challenges, such as long delivery times and the financial burden this may impose.

new export customers.

the creation of a permanent presence in the foreign market

ESSENTIAL FACTORS

  • expand internationally
  • have no experience in the foreign market
  • scarce resources

Types of trading strategies

Types of export strategy

through

KEY STEPS

  • acquisition of a company
  • creation of a new company abroad

Types of business cooperation agreements

Types of DIRECT INVESTMENT

KEY STEPS

EFFECTIVE IMPORT STRATEGY

Identification of the products or services to be imported

Establish long-term relationships with your suppliers

selection of fitting rooms

Use intermediaries as agents or distributors.

for

will be evaluated

consists in

for

import management

assist in the selection of foreign suppliers

conduct detailed market research

the experience of the supplier within the quality and shipment of the product.

mutual collaboration

increase trust

for

CAN PROVIDE

to verify

enable

identify the demand for the product or service within the local market

knowledge

improve quality

the ability to meet delivery deadlines and after-sales service

local contact

HOW

matter efficiency

overcome cultural and language barriers

1. Looking for foreign suppliers that can meet the demand for the product.

how to achieve it?

2. Evaluating THE costs and benefits of importing your product.

maintain constant communication with customers

make visits to supplier facilities

3. Tariffs and trade regulations

to

4. Quality and reputation of your suppliers

make sure the terms of the contract are met

BUSINESS EXAMPLE

Types of export strategy

Indirect

DIRECT

TOGETHER

SUBSIDIARY

THE COMPANY

two or more companies

sells its products directly to foreign customers

establishes a subsidiary abroad

distributors or merchants

collaborate to export their products abroad

uses local intermediaries

is focused on

to

  • complementary products
  • cost sharing
  • market entry risks

sell your products

companies that have knowledge in

1 . useful for companies

for what purpose?

is suitable for

to sell your products abroad

export systems.

strong local market presence

focused on

financial and logistic resources

companies

  • size
  • financial capacity
  • complexity
  • level of development of the target market
  • market competition

expand globally

2. Key factors

companies with limited resources

understanding of the target market

what do you want?

minimize risk

  • barriers commercial
  • lack of knowledge of the market
  • intensive competition

3. Challenges that companies face

cost of entry into the international market

BUSINESS EXAMPLE

TYPES OF BUSINESS COOPERATION AGREEMENTS

strategic alliances

Franchises

license agreement

Joint ventures

long-term agreements

are

allow a company to

agreements between two or more companies

seeking to collaborate in areas of

granting a company the right to use your brand

license work on its technology

create a new entity

to achieve

in exchange for

in exchange for

product development

mutual goals

research

FEES

royalties

FEES

service development

product marketing

product distribution

BUSINESS EXAMPLE

TYPES OF DIRECT INVESTMEN

Direct investment of control

Direct portfolio investment

Gradual Direct investment

implies

acquisition of a company

they acquire a minority stake in a company

in order to

the purchase of shares of a foreign company

but over time

have full control over its operations

without acquiring significant control

they increase their investment

to

over its operations

acquire full control of the company

BUSINESS EXAMPLE

ESSENTIAL FACTORS

Effective project management

Specific challenges

such as they are

helps to

  • cultural difference
  • legal and regulatory barriers
  • lack of infrastructure
  • political uncertainty

reduce project risks and costs

by

how to overcome these challenges?

identifying the necessary resources

establishing clear and measurable objectives

identifying local partners

conducting in-depth market research

stipulating roles

clear responsibilities

adapting foreign market plans and strategies

BUSINESS EXAMPLE

TYPES OF TRADING STRATEGIES

Need to understand cultural differences and international negotiation styles

Thorough preparation and planning

Develop effective communication skills

Establish clear and realistic objectives

Clear understanding of legal and regulatory agreements

BY

where included

this involves

for?

  • Defining what you are willing to concede
  • ideal terms of the agreement

clearly communicate the objectives and terms

  • thorough market research
  • identification of your strengths and weaknesses
  • identification of possible trade-offs
  • researching cultural and negotiation norms
  • adapting the negotiation strategy

for what purpose?

  • understand the needs and demands of the market

BUSINESS EXAMPLE