Internationalization Strategy
The internationalization strategy is for a company to develop outside its national market. It aims to open
up new international market shares by finding commercial outlets.
The internationalization of a company therefore corresponds to the processes and conditions necessary
to establish and develop abroad. The latter is considered international if it undertakes to
internationalize the design, production or marketing of its products. It is a process that takes place in
several stages. Starting from the analysis of the factors of internationalization, then analysis of the
competitive and/or geographical advantages , then the choice of the best internationalization strategy
before making the decision on the choice of markets, to finish with the entry modalities.
Internationalization factors: There are many reasons why organizations are going international. The
barriers to international trade are much lower than in the past. International regulations have improved
, making investments abroad less risky. Advances in communication technologies are making it easier for
people to move and spread ideas. The choice of a specific internationalization strategy depends on
different factors:
Market factors: the convergence of markets is an essential driver of internationalization. This is
due to three elements: the convergence of customer needs, the existence of global customers,
and the emergence of global marketing policies.
Cost factors: internationalization can reduce some costs. There are three reasons for this
phenomenon: the increase in volumes beyond a single national market can make it possible to
generate economies of scale, internationalization is encouraged by the existence of advantages
related to location, taking into account the logistical aspect.
Regulatory factors: government intervention can promote or limit the globalization of markets.
The variables available to authorities to influence international trade are numerous. No
government allows a perfect opening of its economy and situations generally differ from one
industry to another.
Competitive factors: These factors are more specifically related to global strategies. There are
two elements: the interdependence between operations located in several countries that
encourage global coordination, and the presence of global competitors.
Competitive and/or geographical advantages: internationalization must be based on strategic
capabilities that provide a sustainable (short-term) competitive advantage, the location of activities is a
major source of geographical advantages and one of the distinguishing features of internationalization
compared to other diversification strategies.
Before addressing the competitive advantage at the international level, the company must first focus its
intention on its domestic market, for this the PORTER diamond determines the national advantage of the
company which is based on four interdependent factors:
Specific factors : Some countries benefit from particular factors of production that benefit local
firms and give them an international competitive advantage
Local demand: The characteristics of local customers can become a source of international
competitive advantage .
The internationalization strategy is for a company to develop outside its national market. It aims to open
up new international market shares by finding commercial outlets.
The internationalization of a company therefore corresponds to the processes and conditions necessary
to establish and develop abroad. The latter is considered international if it undertakes to
internationalize the design, production or marketing of its products. It is a process that takes place in
several stages. Starting from the analysis of the factors of internationalization, then analysis of the
competitive and/or geographical advantages , then the choice of the best internationalization strategy
before making the decision on the choice of markets, to finish with the entry modalities.
Internationalization factors: There are many reasons why organizations are going international. The
barriers to international trade are much lower than in the past. International regulations have improved
, making investments abroad less risky. Advances in communication technologies are making it easier for
people to move and spread ideas. The choice of a specific internationalization strategy depends on
different factors:
Market factors: the convergence of markets is an essential driver of internationalization. This is
due to three elements: the convergence of customer needs, the existence of global customers,
and the emergence of global marketing policies.
Cost factors: internationalization can reduce some costs. There are three reasons for this
phenomenon: the increase in volumes beyond a single national market can make it possible to
generate economies of scale, internationalization is encouraged by the existence of advantages
related to location, taking into account the logistical aspect.
Regulatory factors: government intervention can promote or limit the globalization of markets.
The variables available to authorities to influence international trade are numerous. No
government allows a perfect opening of its economy and situations generally differ from one
industry to another.
Competitive factors: These factors are more specifically related to global strategies. There are
two elements: the interdependence between operations located in several countries that
encourage global coordination, and the presence of global competitors.
Competitive and/or geographical advantages: internationalization must be based on strategic
capabilities that provide a sustainable (short-term) competitive advantage, the location of activities is a
major source of geographical advantages and one of the distinguishing features of internationalization
compared to other diversification strategies.
Before addressing the competitive advantage at the international level, the company must first focus its
intention on its domestic market, for this the PORTER diamond determines the national advantage of the
company which is based on four interdependent factors:
Specific factors : Some countries benefit from particular factors of production that benefit local
firms and give them an international competitive advantage
Local demand: The characteristics of local customers can become a source of international
competitive advantage .
