When considering an expansion into the international marketplace, you must make
ID: 421250 • Letter: W
Question
When considering an expansion into the international marketplace, you must make three basic decisions: (1) which market to enter, (2) when to enter that market, and (3) on what scale to enter the market. Once a decision has been made to enter the international marketplace, then which mode of entry needs to be used? Instructions 1 View the video, Born Global to learn how smaller businesses are breaking into the global market faster than many large corporations. 2 Research Burger King and identify a new international marketplace that local business could enter. 3 Prepare an entrance strategy for Burger King that includes three basic decisions used to enter the market. When considering an expansion into the international marketplace, you must make three basic decisions: (1) which market to enter, (2) when to enter that market, and (3) on what scale to enter the market. Once a decision has been made to enter the international marketplace, then which mode of entry needs to be used? Instructions 1 View the video, Born Global to learn how smaller businesses are breaking into the global market faster than many large corporations. 2 Research Burger King and identify a new international marketplace that local business could enter. 3 Prepare an entrance strategy for Burger King that includes three basic decisions used to enter the market. When considering an expansion into the international marketplace, you must make three basic decisions: (1) which market to enter, (2) when to enter that market, and (3) on what scale to enter the market. Once a decision has been made to enter the international marketplace, then which mode of entry needs to be used? Instructions 1 View the video, Born Global to learn how smaller businesses are breaking into the global market faster than many large corporations. 2 Research Burger King and identify a new international marketplace that local business could enter. 3 Prepare an entrance strategy for Burger King that includes three basic decisions used to enter the market.Explanation / Answer
Answer to 1)
Small firms have fewer financial, human & other resources as compared to large companies. This is considered as a dominant factor in global trade & investment.
Small firms adopt differentiation strategy by developing differentiated designs & highly distinctive products that can target niche markets. Whereas this can be too small for tastes of large firms. The focus is on creating customer loyalty by meeting particular needs. Increased demand for specialized products, niche markets are considered as important source of opportunities for small firms.
Many small firms segment ICT to segment customers into narrow global market niches and serve highly specialized buyer needs. It can process information & communicate with partners & customers worldwide at zero cost because of the small size of the firm.
Small firms expand internationally by engaging in direct sales or leveraging the resources of the intermediaries located abroad. This enables flexible international operations including the ability to enter or withdraw the market easily.
Though the managers work for small firms, they have strong entrepreneurial mindset. As the size and its resources are limited, the managers can focus more on creativity, can dedicate time on research, take risks and innovate. All these are important for dynamic form of internationalization mainly in knowledge based sectors.
Answer to 2)
Though burger king has its operations in many countries globally, recently it has expanded the global portfolio by making its entry into new markets. These can include morocco, Russia & Slovenia. It can also expand its operations into place like Brazil for two reasons. Many of Brazilians fly to Florida every year where burger king restaurants are abound and also many people living in Florida whose relatives are in Brazil. Secondly it can easily develop a local management team, focus development in major cities, establish local office and support continuous development.
Answer to 3)
Which, when & on what scale?
Which markets to enter?
The company must use demographic & economic conditions of the countries to make its entry in the future. This includes age groups, spending habits, size of the population etc. considering the economic aspects, if the country is growing at a faster pace, there would be more employment opportunities and people tend to become busy. Hence they won’t have time to cook and obviously would go for fast food preference.
When to enter?
When it wants to enter globally, it must check the advantage of capital availability compared to local brands. When the local companies have more knowledge regarding the market operations, then the strategies used by these companies can create immense competition.
What scale:
The scale of operations can’t be that big. This is because prospect of making future profits is not certain. The company can increase its investments in other countries where there is no saturation in the industry rather than new markets.
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