Submission: 1st December 2010
A review of factors that should be considered when deciding to internationalize
The globalization is a historic process by whom the individuals, the human activities and the political structures see their mutual dependence and their material exchanges as much as immaterial increasing on significant distances on the scale of the planet. It consists of the increasing interdependence of savings and contributes to the expansion of the exchanges and the human interactions. The increasing globalization involves then a necessity for the companies to become international.
That is why it seems justifiable to wonder what are the factors that should be considered when deciding to internationalize.
We shall study here has review of several factors such as the resources and the strategies of the company, the environment of the targeted country, and finally the detailed analysis of the competitors.
I. Resources & Reasons
The importance of the resources dedicated by the company defines the possible options and the rhythm of international development. Pervez N. Ghauri says that “a company may become totally involved and invest large sums of money and effort to capture and maintain a permanent, specific share of the market”. Indeed, however, the financial side is not enough to decide to abroad go in spite of the importance of the economic situation and the currency fluctuation. A company can also face an aggressive competition or a saturation of the national market. From a marketing point of view, it is necessary to consider the phases of the life cycle of the product too.
According to Frank Bradley, "The emergence of newly emerging markets in the Far East, Africa and Latin America have increased the demand for and supply of industrial and consumer goods and thereby further