What is an Internationalization Strategy?
An Internationalization strategy is when an organization seeks to expand to foreign markets.
Types of Internationalization Strategy
An internationalization strategy can be broken down into the following three strategies:
Multi-domestic Strategy
This strategy customizes produce and service offerings to a foreign country. As the name implies, the international company seeks to compete more as a domestic player than as a foreign provider of goods and services. This requires a thorough understanding of the local market, as well as employing local managers and employees.
Global Strategy
This strategy offers the same product or service in foreign nations. The idea, however, is to capitalize on economies of scale to have a low-cost structure strategy (low cost of producing and delivering the goods or services).
Transnational Strategy
This strategy is a middle-ground between multi-domestic and global strategy. It calls for slight modifications to products or services while still attempting to take advantage of the economies of scale in producing more of the core products.
There are various methods for entering a foreign market, see the following articles:
- Entering Global Markets
- Carrying on International Business
Related Topics Strategy
- Organizational Strategies
- Growth-Based (Expansion) Strategies
- Inorganic Growth
- Organic Growth
- Diversification
- Concentration
- Integration or Combination (Horizontal and Vertical)
- Asset Acquisition Strategy Definition
- Horizontal Integration – Explained
- Backward Integration – Explained
- Internationalization
- Cooperative Strategy
- Consortium Definition
- Stability and Retrenchment Strategies
- Competitive Strategies
- Contestable Market Theory
- Value Disciplines
- Porter’s Generic Strategies
- Differentiation (Strategy)
- Commoditize
- Niche Market Strategy
- Long Tail
- Low-Cost Production
- Resource-Based View of the Firm
- Resource Dependency Theory
- Ansoff Matrix
- Customer-Centric Strategy
- Blue Ocean Strategy
- Overfished Ocean Strategy
- Hedgehog Concept (Strategy)
- Innovation Strategy
- Bleeding Edge
- 3 Horizons of Growth
- Disintermediation (Strategy)
- Strategic Alliance
- Coopetition (Strategy)
- Loss Leader Strategy
- Lean Strategy
- Game Theory Perspectives
- Functional Strategies
- Marketing Strategy
- Zero-Cost Strategy Definition
- Mobile First Strategy Definition
- Operational Strategy