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  • 2 EPRG, International Orientation

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    Pinky Aggarwal
    19 Ansichten15 Seiten
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    19 Ansichten15 Seiten

    2 EPRG, International Orientation

    Hochgeladen von

    Pinky Aggarwal
    nice

    Copyright:

    © All Rights Reserved
    Als PDF herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 15
    Stages of Oy STAGES OF INTERNATIONALISATION. Tnterationa asness oe: “The sbove stated factors contributed forthe significant change in the scenario of internation et ‘business and resulted in the variations in the operations of international companies. These variation Grea | in the scenarios generally categorized ino five stages viz., domestic company, inernations ae ‘company, multinational company, global company and transnational company. Now, we studs cpuitocrionat #6 scenario ja detail ; | | Company COMP: | | Peoria STAGEA1 ‘OMPANY I Feed omestie company limits its operations, mission and vision to the national political boundaries ae ‘This company focuses its view on the domestic market opportunities, domestic suppliers, domestit financial companies, domestic customers ete “These companies analyse the national environment of the country, formulate the strategies exploit the opportunities offered by the environment. The domestic companies’ unstated moto is that, “if ut is not happening in the home country, itis not happening.” aie The domestic company never thinks of growing globally. If i¢ grows, beyond its presen career mteits capacity, the company selects the dversifiation sirategy of entering into new domestic markets ‘operations Yo new products, technology etc, The domestic company docs not select the strategy of expansion notional politcal penetrating into the intemational markets. boundaries, stage INTERNATIONAL COMPANY cme of the doniestic companies, which prow beyond their production and/or domestic market ‘capacities, think of intematioasiizing their operations. Those companies why decise t exploit the opportunities vatsde the domestic court ake the Sage wo compunies. These companies OXIA eee pean esd oe asa OES UE ee eae eee : Sr or ltr, the international companies leam thatthe extension strategy (Le, extending etc predic, price and promotion to foreign markets) wil not work. The beet example is Hufciovcia exposed Toyopet cars produced for Japan in Japan to the USA ia 1957. Teyopet was Siafl inthe USA. Toyota could not sel these cars inthe USA as they were over priced, a and bul ike tanks, Thus, these cars were nt suitable for the US markets. The “Gig cars were shipped back to Jonon SB jot took this failure as a rch leaming experience and as a source of invaluable intelligence Set 25 feilure. Toyota based on this experience designed new modes of cars suitable for the Site. The incemational companies tum into multinational companies when they start dig 0 the specific ness of the different country markets regarding prodect, price and soon #2 nis sage of multinational company is also refered to as multdomestic. Malidomeatc ‘coripany formulates different sraegies for efferent markets; thus, the orientation sis from

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