Today’s business worldwide is characterized by the impact of globalization. As the world has become more interconnected international business is almost omnipresent.
This report of international business focuses on foreign market entry strategies of two companies which have chosen to expand their operations in recent times. In the race for corporate global expansion, international companies constantly evaluate a range of locations and mix of strategies appropriate to succeed abroad. A general overview about commonly proven foreign market entry principles provides the reader with the essential framework.
The author chose corporate examples from different industries, such as the British grocery retailer Tesco PLC and the German machine tool manufacturer Deckel Maho Gildemeister AG and delivers deep insights into the market conditions.
The market entries take place in two contrasting nations such as China and the USA, whereas each case study contains an in-depth research of the economic freedom.
Inhaltsverzeichnis (Table of Contents)
- International Business: Foreign Market Entry Principles
- Globalization and its Impact on Business
- Stages of International Expansion
- Reasons for Internationalization
- Deckel Maho Gildemeister AG's Investment in Shanghai
- The Chinese Market: Opportunities and Challenges
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report analyzes foreign market entry strategies by examining two companies that recently expanded their operations. The objectives are to explore diverse approaches to international expansion, considering factors such as industry type and competitive pressures. The report uses case studies to illustrate various challenges and opportunities presented by globalization.
- Foreign market entry strategies
- Globalization and its impact on business competitiveness
- The role of government intervention in economic development
- Challenges of operating in emerging markets (specifically China)
- Client-driven internationalization strategies
Zusammenfassung der Kapitel (Chapter Summaries)
International Business: Foreign Market Entry Principles: This introductory chapter defines international business and its scope, emphasizing the growing interdependence of global economies due to globalization. It introduces the concept of globalization and its impact on businesses, including increased competitive pressures. The chapter lays the groundwork for exploring the diverse strategies employed by companies seeking international expansion, setting the stage for the case studies that follow.
Globalization and its Impact on Business: This section delves into the meaning and implications of globalization, highlighting its role in increasing market transparency and the subsequent competitive challenges. It outlines several stages of international expansion, from direct export to foreign direct investment, providing a framework for understanding the progression of firms' global engagement. The growing interconnectedness of markets is stressed, emphasizing the need for companies to adapt to the complexities of international business.
Stages of International Expansion: This chapter details the various stages of international expansion, progressing from simple direct export to more complex methods like foreign direct investment. The correlation between these stages and the broader process of international expansion is explored, offering a structured approach to understanding the strategic choices available to companies. The chapter provides a foundational understanding of how firms can methodically increase their international presence.
Reasons for Internationalization: This section explores the motivations behind companies’ internationalization efforts. It emphasizes the “follow the customer” strategy, particularly prevalent in industries with key accounts, such as the automotive sector. The chapter underscores the importance of proximity to major customers and the potential loss of business if companies fail to adapt to their clients’ global expansion. This analysis stresses the importance of customer relationships in driving international business decisions.
Deckel Maho Gildemeister AG's Investment in Shanghai: This chapter presents a case study of Gildemeister AG, a leading machine tool manufacturer, and its investment in Shanghai. It examines the competitive landscape of the global machine tool market, characterized by globalization and intense competition from Asian countries. The chapter highlights Gildemeister's strategic decision to establish a presence in China, driven by the rapidly growing demand and the presence of key automotive clients. It uses Gildemeister's success in China as an illustration of a successful foreign market entry strategy in a rapidly developing market.
The Chinese Market: Opportunities and Challenges: This chapter focuses on the Chinese market, analyzing its economic growth, trade policies, and the level of government intervention. It discusses China's economic reforms, its entry into the WTO, and its emergence as a major trading nation. The chapter also acknowledges the complexities of the Chinese market, including issues related to economic freedom, government regulation, and competition. It provides context for understanding the challenges and opportunities presented by investing in China, complementing the Gildemeister case study.
Schlüsselwörter (Keywords)
International business, foreign market entry, globalization, competitive pressure, China, economic development, foreign direct investment, client-driven strategy, machine tool manufacturing, emerging markets.
Frequently Asked Questions: International Business: Foreign Market Entry Principles
What is the purpose of this report?
This report analyzes foreign market entry strategies using case studies of companies that have recently expanded internationally. Its objectives are to explore diverse approaches to international expansion, considering industry type and competitive pressures, and to illustrate the challenges and opportunities presented by globalization.
What are the key themes explored in this report?
The report focuses on foreign market entry strategies, the impact of globalization on business competitiveness, government intervention in economic development, challenges of operating in emerging markets (particularly China), and client-driven internationalization strategies.
What topics are covered in the report's chapters?
The report covers the principles of international business and foreign market entry; the impact of globalization on businesses; the stages of international expansion (from direct export to foreign direct investment); the reasons for internationalization, including client-driven strategies; a case study of Deckel Maho Gildemeister AG's investment in Shanghai; and an analysis of the opportunities and challenges presented by the Chinese market.
What is the significance of the Deckel Maho Gildemeister AG case study?
The Gildemeister AG case study illustrates a successful foreign market entry strategy in a rapidly developing market. It examines the company's decision to establish a presence in China driven by growing demand and the presence of key automotive clients, highlighting the competitive landscape of the global machine tool market.
What are the key challenges and opportunities of the Chinese market?
The report analyzes China's economic growth, trade policies, government intervention, economic reforms, and its entry into the WTO. It also addresses the complexities of the Chinese market, including economic freedom, government regulation, and competition.
What are the key stages of international expansion discussed?
The report outlines several stages of international expansion, progressing from simple direct export to more complex methods such as foreign direct investment. It emphasizes the strategic choices available to companies as they methodically increase their international presence.
Why do companies internationalize?
The report highlights various motivations for internationalization, with a particular focus on the "follow the customer" strategy prevalent in industries with key accounts. It stresses the importance of proximity to major customers and the potential consequences of failing to adapt to clients' global expansion.
What keywords best describe the report's content?
International business, foreign market entry, globalization, competitive pressure, China, economic development, foreign direct investment, client-driven strategy, machine tool manufacturing, emerging markets.
- Quote paper
- Mike Kleinemaß (Author), 2006, International Business: Foreign market entry principles, Munich, GRIN Verlag, https://www.grin.com/document/66819
