This paper focuses on different internationalization strategies for small business. The current term paper should explain the basics by defining the essential terms. Subsequently, reasons and motives for internationalization strategies listed for small business. As a result, conceivable market entry forms are to be set out with their advantages and disadvantages. Based on the strategy forms, the opportunities and risks that could arise for small and medium-sized enterprises (SMEs) in an international market entry strategy are then highlighted. Finally, in the last chapter, a conclusion is drawn and daring a look into the future for the small business.
Internationalization has undergone a dynamic development in the past three decades. The main driving force were the political changes in the world. This political opening also led to a disproportionate growth in the world trade. These changes also affect small and medium-sized companies and are a current challenge, that should be raised, which is also reflected in the close ties, between the Term middle class and foreign trade shows. The globalization of the economy is forcing medium-sized companies to rethink and restructure their business processes and value chains.
However, SMEs lack specific prerequisites for carrying out international business activities. Not just capital and management but also the knowledge of internationalization is a significant success factor. Nevertheless, SMEs can develop opportunities and successfully translate them into an international activity that, especially because of its niche strategy, aims to meet the special needs of international clients that can not satisfied by large companies A niche production or export, however, is not enough to assert oneself against international competitors in the long term. That is why influences like use of technical advances, short product cycles and fast and active presence abroad to internationalize the value chain of the company. For a successful and targeted internationalization strategy for small business, it should be necessary to create a concept that includes motives, market entry forms, possible potentials and conceivable obstacles.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Definition
- Small business
- Internationalization
- Internationalization strategies
- Reasons and goals
- Market launch
- Export
- Direct investment
- Cooperation agreements
- Opportunities and risks
- Market launch potentials
- Market launch barriers
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The purpose of this term paper is to explore the fundamental aspects of internationalization strategies for small businesses. It aims to define key terms, analyze the motivations behind internationalization, and outline various market entry strategies. The paper will then examine the opportunities and risks associated with international expansion for small and medium-sized enterprises (SMEs).
- Definition of small businesses and internationalization
- Reasons and goals driving internationalization strategies for SMEs
- Market entry strategies including export, direct investment, and cooperation agreements
- Opportunities and risks associated with international market entry for SMEs
- Potential challenges and future considerations for small businesses pursuing internationalization
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of the dynamic development of internationalization in recent decades, driven by global political changes and the growth of world trade. It highlights the challenges faced by SMEs in a globalized economy and emphasizes the need for specific knowledge and resources to succeed in international markets.
- Definition: This chapter defines the key terms of "small business" and "internationalization," providing a foundation for understanding the concepts explored throughout the paper.
- Internationalization strategies: This chapter delves into the reasons and goals behind internationalization strategies for SMEs. It outlines the various market entry forms available, including export, direct investment, and cooperation agreements, exploring their advantages and disadvantages.
- Opportunities and risks: This chapter examines the potential opportunities and risks associated with international market entry for SMEs, highlighting factors such as market launch potentials and barriers.
Schlüsselwörter (Keywords)
This term paper focuses on the key concepts of internationalization, small and medium-sized enterprises (SMEs), market entry strategies, opportunities, and risks. It explores the challenges and considerations involved in expanding businesses into international markets, emphasizing the importance of strategic planning and resource management for successful internationalization.
- Quote paper
- Konstantin Klaus (Author), 2019, Internationalization Strategies for Small Business, Munich, GRIN Verlag, https://www.grin.com/document/465548
