Many companies have the objective of exporting from their conception, some are multinationals since their creation; and others, mostly small and medium-sized companies (SMEs), find internationalization at some point in their development as a path to growth and diversification. Diversification often looks at trading also. Trading platforms can be great for businesses and solo people alike, however, it will be best to look into MetaTrader 4 for further information on how it can assist.
Here are the six stages of internationalisation of a company; although this may vary according to the type of product, the characteristics of the business, and the financial capacity of the company:
Stage 1: National: It is the company whose exclusive objective is the local market, either consciously as a strategic choice or unconsciously to avoid marketing outside the country. Until a few years ago, especially in large countries like the United States, these companies could be quite successful operating in the domestic market; but today there are fewer industries that can survive this way.
Stage 2: Export: It is a strategic process that involves more than just making sales abroad through contacts with importers or carrying out the different export procedures. It relates to all the functional areas of the company and requires dedication, research, enthusiasm, and a proper preparation process.
Stage 3: International: It is a company that goes beyond carrying out export processes and is involved in the marketing environment of the countries in which it does business. In general, it has a direct representation to coordinate in the target markets instead of depending on intermediaries. It may even become willing to manufacture the product outside the country of origin to gain a greater competitive advantage.
Stage 4: Multinational: When a company decides to respond to market differences, it becomes a multinational; In other words, it formulates a unique strategy for each country towards which it directs its business. A multinational company has a polycentric orientation, which assumes that the ways of doing business around the world are so unique that the only way to be successful internationally is to adapt to each national market.
Stage 5: Global: It is the company that has a global marketing strategy or a global location, but not both. It focuses on global markets and the location comes from the country of origin or the singular country to supply these markets, or it focuses on the national market and the location of the world to supply national channels. Your strategy works if you can create competitive advantages by limiting the globalization of your value chain.
Stage 6: Transnational: It is the type of company that increasingly dominates markets and industries around the world. It is an integrated global company, with a global vision that links its international resources with the different markets with a benefit. They think globally and act locally, so adaptation in countries is minimized and this adds value.
So whether you’re an SME with new ambition or if you’re already a larger sized business wanting to further diversify, there is a chance to do this by learning the rudiments of internationalization and globalization of your brand.