Benefits of expansion in the international market are easily visible.
Companies can grow into new markets, enabling the launch of new products based on marketing a new experiment with many products, create partnerships with other corporations or form alliance partners strategjigje to expand their growth etc.
However the process of entry into the global market there and a series of challenges, some of which can not be managed. One of the biggest challenges of management is considered a versatile competition. When companies enter the market at a national competition they face many leading local brands, which already have established their location and market infrastructure.
So when Google refused to cooperate with the Chinese government, she was forced to leave the Chinese market. Such a problem not only reduced competition against Google competitors Yahoo, Bing.com in the state Baidu.com and Chinese, but also the added problem that Google strategjigje agreements could create with these companies or others.
One of the other challenges facing companies consists in the fact of maintaining a balance between the real identity of their brand at the same time that are expanding into new markets with local culture, preferences, environmental rules.
Some of the strongest brands have failed in this process. And one of the most classic examples is that of Disney World in France and Hong Kong market. The company released it s conclusion that export all elements of the brand in these markets would be required by customers through the market. But apparently the company did not analyze the composition of the customer, who in this case had very specific requirements which do not coincide with those of the company. So Disney at the time of rejection suffered by consumers.
While more companies sshumë enter new markets or foreign complication becomes even greater.
Language is different countries, formal institutions, as well as rates, informal culture. When accessed in a new market should be careful in managing legal, political, cultural, in accordance with the rules of the country where accessed. Thus most recognized brands, including McDonald’s and KFC have reconfigured their menu when they enter the Indian market.
However, when Starbucks wanted to enter the Indian market, a problem that was encountered was great. Indian state decided not to allow foreign direct investment 100%. So Starbucks was forced to cooperate with domestic companies to enter the Indian market. So look through these examples of brands that globalization is a really challenging issue. Brands need to examine very carefully the risks before implementing this strategy.
2. Increase franchises
Increased global franchises in the market helps in opening jobs for new graduates. For example every year to create 170,000 US jobs franchises. Franchising helps increase the work level of professionalism through training provided by the agreement between frazhistorit and implementers.
Based on history or specific cases that we see every day, globalization franchise has proven very successful.
Issues to be considered
When a company decides to operate abroad in the form of a franchise, it is necessary to recognize frazhistori good place where it will operate, including economic, political, cultural, social climate, etc. customer revenue.
Also among the cities where there are many people ready to run a business based more on personal relationships rather than by formal outreach. This mainly any other wire in Latin America and in China. In areas such as the UK, Singapore, Australia is advisable franshiztori have detailed information and maintain continuous contact with the company Hi (implementer). This implies that different countries have different rules about franchising
Franchise organizations such as the International Trade Administration Association and help franzhistorët operating in a global market. The World Trade Organization estimates that the pace of global trade growth this year will fall to 3.7 percent. The reason for this is the increased possibility of an economic recession in the Eurozone and rising commodity prices. Price will always vary from market to market. For example, a product promoted as low-cost alternative in France will find limited success in expensive boutiques.
Alongside it, the WTO noted that China will continue to occupy the first place in the world for the growth rate of imports.
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