Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
International Operations
Companies decide to internationalize operations when the local market becomes saturated as a method to continue to grow and increase market share. Internationalization is the process by which companies shift operations from their home country into foreign markets. This process can be accomplished through a number of methods depending on the size, resources and strategy of the company.
Methods of International Operation
Companies will normally expand into international operations by exporting to overseas markets through independent channels or by licensing foreign manufacturers to produce products for overseas markets (Dicken 2003, p. 207). The next step is for a company to establish sales outlets in overseas markets by either buying a local company or setting up a new facility (Dicken 2003, p. 207). The last stage in internationalization is when a company establishes production facilities overseas by either buying another firm or setting up facilities (Dicken 2003, p. 207).
III. International Strategy for Polymer Technology Systems (PTS)
PTS is a medical diagnostic tools company founded in 1992 in Indianapolis, IN, USA (Cardiochek, 2008). Its main product is cardiochek, a handheld point of care diagnostic device to test blood cholesterol (CardioChek, 2008). The product was launched outside of the U.S. In 2002 and is currently available in 100 countries and six different languages (CardioChek, 2008).
PTS began its international operations by exporting its devices to 70 different countries (Wall, 2007). This is a good entry strategy for PTS because it was a newer company that did not have the experience or capital to open facilities or purchase local companies for distribution. PTS made a good move by hiring Hans Fredman as its international sales director in January 2003 (Wall, 2007). Fredman, based in London, is well connected with medical-device makers and worldwide distributors (Wall, 2007). Finding local...
Exporters need the local expertise that distributors provide.
Many companies from the U.S. that expand internationally do not understand that doing business in other parts of the world cannot be conducted in the same way as they are accustomed to doing business locally. PTS focuses on finding, supporting and keeping good distributors because each country has different rules, regulations and customs, therefore the company relies on local distributors to represent the company's product (Wall, 2007). Relationships are very important to building international export strategies because suppliers and distributers want to make sure they are dealing with a reputable and stable company that won't disappear overnight. The same is true for a company looking for a reputable distributor. This can only be accomplished by making the right contacts and investing in developing the relationships over time, which is what PTS has done.
PTS tapped a good market and created a niche for itself early in the home medical device market. Beginning with doctor's offices and home models the company expanded the devices for use by pharmacies to use in promotional health screenings which launched the devices into high use around the world (Wall, 2007). Boots, the largest pharmacy chain in the U.K. approached PTS to use the device in promotional cholesterol screenings in 1,400 of its stores and other companies in Europe soon followed (Wall, 2007). Promoting its device for use in medical screenings became a major growth strategy for PTS in all of its foreign markets after its initial success in Europe (Wall, 2007).
PTS further developed its operations strategy by partnering with European pharmaceutical companies that wanted to use the device to test patients' cholesterol and then promote their cholesterol-reducing drugs (Wall, 2007). AstraZeneca sent CardioChek meters to doctors to promote…
References
Cardiochek, 2008. Company Information, [online] Available at: <http://www.cardiochek.com/companyinformation/> [Accessed 19 Dec. 2010]
Dickens, Peter, 2003. Global Shift. 4th ed. London: Sage Publications.
Wall, J.K. (2007, June 25). As Barriers Drop, Even Small Firms Go Global, [online] Indianapolis Business Journal, 28 (16), p. A8 Available at <http://www.allbusiness.com/company-activities-management/company-strategy/10583898-1.html> [Accessed 19 Dec. 2010]
International Marketing A situation analysis is termed as a foundation to be used for a marketing plan. A situation analysis normally includes an examination of both the internal and external factors that can affect a business. A situation analysis creates an overview of the organization that acts as a guide to understanding the factors that influence the future of an organization (Lorette, 2010). The paper will look at the situation analysis
International Business Competitive strategy is the bedrock on which companies base business decisions to reach their targets and achieve profitability. Formulating and implementing strategies in international business is much more complicated and difficult task than doing so in home or familiar markets. Competitive strategy deals with the development of abilities by a firm to keep ahead of competitors in the fields in which it operates. Firms develop competitive edge in global
In fact many identify as European as opposed to Latin American. In addition, although Spanish is spoken in Argentina and it is the official language of the country, it is also a quite different type of Spanish than the Spanish spoken in other Latin American countries ("Argentina cultural guide"). In addition to the aforementioned differences, there are also differences associated with Business Etiquette. In Argentina the culture is driven by
International expansion is one of the growth strategies that are embraced by companies in order to improve their bottom-line/profitability. In this paper, we present an elaborate international marketing strategy for Red Bull energy drink. The marketing plan begins with an introduction into the concept of international expansion and marketing and a brief overview of the company. A review of the main conclusions and recommendations is then presented. This is then
International Business Management AccuForm Corporate Corruption Case Analysis Establishing a subsidiary in a foreign nation poses many challenges. Corporate leadership challenges can often be the most daunting to resolve. One a most challenging leadership challenges is that of ethical considerations and corporate corruption. Corporate cultures differ and these differences can create major difficulties for foreign subsidiaries. This case involves corporate espionage and the theft of proprietary product information, as well as the
46). Likewise, Gillispie suggests that an incremental approach can be used to "test the waters" for even very small companies seeking to project an internationalized presence. In this regard, Gillespie recommends that companies, "Craft a scaleable master design that represents the major aspects of your business worldwide and anticipates the degree of localization that will be required in each market. The degree of localization can have a real impact