Sunday, July 28, 2019
Entry Strategy in the Market of Scotland for Sony Corporation Assignment - 2
Entry Strategy in the Market of Scotland for Sony Corporation - Assignment Example This research will begin with the statement that international business is a comparatively complex phenomenon that requires managing a large number of variable factors associated with the business. Internationalization of business becomes important due to multiple factors such as saturation of the home market, expanding opportunities in the foreign markets, economies of scale in the global production and many more. However, before entering into international business, a firm must analyze its own capabilities in terms of whether it is strong enough to participate in the global business process as well whether it will be profitable for the firm to expand business in the targeted foreign market. Once the capabilities of both the entities are ensured, the company must decide on the foreign market entry strategy that it is going to incorporate. In this context, the firm should also confirm whether it will standardize their existing business practices in the target market or adapt the busi ness process, prevailing in their target market. Once all these foreign market strategies are evaluated, the company will be able to formulate its marketing and expansion strategies solely for this particular market, depending on the competitiveness of the host country. Such strong market evaluation and accordingly strategy formulation will definitely bring success to the company in its international business. With the rapid expansion of globalization and liberalization of economies, the business world is experiencing huge progression in international trade. International trade refers to all the commercial transactions and trade and investment that take place between governmental and private organizations from different countries. Naturally, organizations participating in international business are highly exposed to the global competition and the constraints of international trade. Therefore, such organizations are bound to formulate business strategies that will help the organizations to perform successfully in the international market and to ensure their long-term sustainability. Fundamentally, a strategy of international business concentrates on the aspects regarding how an organization, especially private organizations can maximize their profitability. However, in order to sustain in the globally competitive world, relevant strategies should be implemented in every aspect of business s tarting from sources of raw materials, methods of productions and operations, logistics and supply chain as well as marketing and financial process. In fact, as social and cultural prevalence tends to be different in various countries, organizations should incorporate appropriate strategies for different markets.