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Firms expanding internationally

Here are a few strategies that successful firms have employed to succeed when expanding internationally:

Choose the right partners. Winning companies avoid teaming up with inept and inefficient state enterprises or relying too heavily on in top level connections. Successful companies are searching for partners from entrepreneurial companies owned by local governments or the military. They also insist on management control.

Focus on the basics. Foreign investment is often plagued by poor business planning. Smart players make money by focusing on the fundamentals, such as marketing, distribution and sales.

Guard technology. Resisting government pressure to transfer key business know-how lessens the opportunities for future competitors. Winners typically hand over only the knowledge necessary to ensure that their ventures are competitive, while keeping next generation technology at home. They also fight aggressively against theft of intellectual property.

Fly low. Huge, costly and high-profile projects often become bogged down in red tape, national politics and bureaucratic turf wars.

Successful companies launch a series of small ventures associated with more cooperative local governments.

Are there any other ideas that would be beneficial for companies to consider?

Operation Research, Management Studies

  • Category:- Operation Research
  • Reference No.:- M927704

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