Please answer the following International Business question in at least 3 paragr
ID: 340074 • Letter: P
Question
Please answer the following International Business question in at least 3 paragraphs, if not more. Answer and explain in detail. Please use as much international business terminology as possible. Do not copy and paste answer from another question. Thank you!
Organizations often find that they need to develop new skills and abilities in order to expand their operations internationally. Consider the differences between operating in one country and operating in many countries. Write an essay describing the skills and abilities that an organization would need to develop in order to compete in the global marketplace. Explain why those skills and abilities are especially important in an international setting. Provide examples to support your point of view.
Explanation / Answer
Going international is a very big challenge for any company just because for the fact that the company will have to face the unfamiliar challenges in the new markets. The company first needs to understand what they want to expand their business and go global. They will have to change their business strategy and make sure that they have the required resources and talent to become a successful company in the unknown markets. The first problem company faces is the entry mode for the new market. Not every company can make use of direct selling or franchising or strategic alliance. The company needs to choose the right method to enter the international market. A small mistake here can ruin the company image as well as the investment made in that market. They need to choose the right partner or a distributor in the international market to establish the market initially.
Some of the skills and capabilities required to enter an international market are the communication skills, adaptability, international marketing, local talent, relationship building skills, staying consistent, market analysis, international pricing strategy, strategic alliances, and risk assessment. Excellent communications skills are required in order to communicate with the customers we do not know well. Communication can be a barrier to the new market and we need to overcome that. The company needs to embrace changes and be adaptable so that we understand the local market better and get closer to the target customers. The company cannot make the company employee work in the international market and they need to hire local talent to build an army that is capable of winning the war against the competitors. The company needs to build good relationships with the existing businesses in their markets to gain confidence and also to get the valuable inputs form them. The marketing approach of the company should also change they should have a wide vision while creating the marketing strategy. They cannot have a universal marketing approach and instead, they need to customize their message according to the local market needs.
Identifying the risks early in the process and assessing them to avoid the future failures is very important to build a sustainable business in the international market. The pricing strategy should be very dynamic to attract the local customers and gain a competitive advantage in the market. Strategic alliances will give the company the required exposure in the market and also the customer base to sell into. This can be a confidence booster for the company and an easy way to generate some revenue in the new markets. Alibaba and Amazon are the best examples of the companies that succeeded in the international markets with their abilities and skills. Both the company identified the opportunities early in their business and they just concentrated on the best entry modes and building a good workforce that can help the company in achieving its goals. They adapted to the new market with the help of local distributors and then created a marketing strategy around it. These skills are very important because they are the stepping stones of success for a company in the international market. Companies need to be well equipped to face the challenges when they are in a new market and these abilities will help them in reaching their goals as quickly as possible.