How companies decide to go global for expansion of business.. Different Global business strategies and modes of operation

2. Advantages
&
Disadvantage
What is
Expanding
Globally
means ?
Mode of
Operations
2 Major
Problems
while Going
Global
How they
Choose
Country ?
Why
Companies
Go Global ?

3. Internationalization
 The international marketplace offers a
world of business opportunities for
companies seeking to sell or source
products worldwide.
 Not only can you tap into a world
marketplace of 7 billion people, but
according to business.gov, companies
that do international business grow
faster and fail less often than companies
that don't.
Internationalization is a cluster of International Strategies
required / adopted by an organization to market their
products/ services beyond the domestic boundaries.

4. Why Companies Go Global ?
Active
Reasons
Additional
Resources
Expanding
Market
Leveraging
Existing
Products, Skills
Realizing Cost
Economies
Reactive
Reasons
International
Demand
International
Competition
Trade Barriers
Policy
Regulations

5. How Companies Choose International Markets ?
Porter’s
DiamondModel
National Competitive Advantage

6. 4 Blocks of Porter’s Diamond Model
Factor Conditions :Describes the
situation in a country regarding
production factors, like skilled
labour, infrastructure, etc., which
are relevant for competition in
particular industries.
Home Demand
Conditions: Describes the state of
home demand for products and
services produced in a country.
Related and Supporting
Industries: The existence or non-
existence of internationally
competitive supplying industries
and supporting industries.
Firm Strategy, Structure, and
Rivalry: The conditions in a
country that determine how
companies are established,
organized and managed, as well
as the characteristics of domestic
competition industries.
Government and
Chance: Government can
influence development when
interfering market development;
unexpected events are described
with the factor Chance.

7. 2 Major Problems while Going Global
Pressure of COST
reduction Pressure of
Local
Responsiveness
International
Strategy

8. Modes of Operation

9. Advantages Disadvantages
 Realizing Economies of Scale
 Realizing Economies of Scope
 Expansion of Markets
 Access to resources overseas
 Realizing location economies
 Higher Risks (PESTEL)
 Difficulty in monitoring cultural
diversity
 Trade barriers
 Higher distribution costs

10. Kashyap Shah
Anubhuti Gupta
Harsh Jain
Divya Saxena
Prepared & Presented By,
Group- : Section-C