International-Business-Dr-R-Chandran-E-book

150
International Business- Dr. R. Chandran
Stages Objective Action Plan Anticipated risks and
hurdle
“Physical (i) Identify one (i) Local resistance for
movement of country.
bringing.
goods and (ii) Focus on one (ii) Technical and
Stage:1 services from product or services. commercial barriers.
the country of (iii) Explore (iii) Competitive forces
its origin”. opportunity for from local and
exports. imported goods.
“Strengthen (i) Build a strong (i) Local competitors
and stabilize relation in one pose threats.
one overseas market.
(ii) Price war is
market.” (ii) Promote brand inevitable.
Stage:2
name with
customers and
channels.
Stage:3
Stage:4
Stage:5
STAGES FOR GLOBALIZATION FOR AN
ENTERPRISE
“Establish
manufacturing
base in the
importing
country”.
“Spread the
distribution and
increase
production in
the region”.
“Move to other
regions by
investing and
producing”.
(i) Narrow down to
one local partner.
(ii) Locate an ideal
place for
production.
(iii) Workout for
financially together.
(i) Develop fast
network in the
neighbouring
countries.
(ii) Setup
warehouses / subdealer
network in
the region.
(i) Set up
subsidiaries.
(ii) Develop strong
systems.
(iii) Induct right
people with
performance.
(iv)Flexible to local
environment.
(i) Competitors
increase their
production capacity.
(ii) Local regulations
on labour, transaction
and infrastructure may
trouble the operation.
(i) Every part of the
region works
differently.
(ii) Rules are not
uniform.
(iii) Demand level is
not similar in every
country.
(i) Cross cultural
complexities.
(ii) Local adaptability.
(iii) Promotional
barriers.
End Result
(i) Entry into one
country- successful.
(ii) Learning
experience in a
country outside.
(i) Strengthen one
country by
overcoming all the
hurdles.
(ii) One or few
importers extend
cooperation and
support for constant
flow of goods.
(i) Local production
brings down the cost.
(ii) The enterprise
becomes close to the
customers.
(iii) Brand loyalty is
built.
(i) Access in the
whole region.
(ii) Easy to
experiment in other
regions.
(iii) Revenue is
increased.
(i) Global take off
assured.
(ii) The enterprise has
a competency in skill
and knowledge to go
global.
Only for Private Circulation