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Get faster at matching terms Terms in this set (59)Sets found in the same folderThe primary reasons that companies opt to expand into foreign markets are to: boost returns on investment, broaden their product lines, avoid tariffs and trade restrictions, and escape dealing with strong labor unions. gain access to new customers, achieve lower costs, enhance the company's competitiveness, capitalize on core competencies, and spread business risk across a wider market base. grow sales faster than the industry average, reduce the competitive threats from rivals, and open up more opportunities to enter into strategic alliances. avoid having to employ an export strategy, avoid the threat of cross-market subsidization from rivals, and enable the use of a global strategy instead of a multidomestic strategy. raise the entry barriers for industry newcomers, neutralize the bargaining power of important suppliers, grow sales faster, and increase the number of loyal customers. The chief difference between a "think global, act global" and a "think global, act local" approach to crafting a global strategy is that a "think global, act local" approach involves charging much different prices in the various country markets where the company competes. a "think global, act local" approach involves much less adherence to using the same basic competitive strategy theme (low-cost, differentiation, best-cost, or focused) in all country markets. a "think global, act local" approach involves considerably less adherence to utilizing the same capabilities, distribution channels, and marketing approaches worldwide. local managers are given more latitude in adapting the global strategy approach as may be needed to accommodate local buyer preferences and be responsive to local market and competitive conditions. a "think global, act global" approach involves selling under a single brand worldwide, whereas a "think global, act local" approach involves the use of multiple brands (often a local brand for each local market).
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Get faster at matching terms Terms in this set (86)Sets found in the same folderWhich of the following is a main reason for businesses to expand into foreign markets?What are reasons that companies expand into foreign markets? take advantage of new resources and capabilities. buyer preferences in foreign markets force companies to customize their products.
Why do companies decide to enter a foreign market quizlet?To gain access to new customers. To achieve lower costs through economies of scale, experience, and increased purchasing power. To further exploit its core competencies. To gain access to resources and capabilities located in foreign markets.
What is one reason that a company would choose to expand internationally quizlet?Diversification-Many businesses expand internationally to diversify their assets, an action that can protect a company's bottom line against unforeseen events. For instance, companies with international operations can offset negative growth in one market by operating successfully in another.
What is one reason that a company would choose to expand internationally?Companies also choose international expansion to gain a competitive edge over their opponents. For example, businesses that expand in markets where their competitors do not operate often have a first-mover advantage, which allows for them to build strong brand awareness with consumers before their competitors.
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