International Business Strategies

International Business Strategies

International Business Strategies

Profitability is the actual rate of return that a firm makes on its capital investment, whereas profit growth refers to the net increase in profits overtime. Factors playing an important role to enhance the profitability of the firm includes differentiation strategies, cost minimization and international expansion ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"YjbTqimY","properties":{"formattedCitation":"(Understanding the difference between profitability and rate of return n.d.)","plainCitation":"(Understanding the difference between profitability and rate of return n.d.)","noteIndex":0},"citationItems":[{"id":12,"uris":["http://zotero.org/users/local/MV6HjRQT/items/DCKCP2X3"],"uri":["http://zotero.org/users/local/MV6HjRQT/items/DCKCP2X3"],"itemData":{"id":12,"type":"webpage","title":"Understanding the difference between profitability and rate of return","URL":"https://www.myabcm.com/blog-post/understanding-difference-profitability-rate-return/","accessed":{"date-parts":[["2019",9,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Understanding the difference between profitability and rate of return n.d.).

The global market expansion provides a floor for the companies to boost profitability and profit growth rates. By operating globally, firms can capture an extensive market for its local products, recognize location economies to disperse the activities of value creation where they can be performed proficiently ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"dYWIl1aJ","properties":{"formattedCitation":"(The Three Principles of Marketing n.d.)","plainCitation":"(The Three Principles of Marketing n.d.)","noteIndex":0},"citationItems":[{"id":10,"uris":["http://zotero.org/users/local/MV6HjRQT/items/7V4TKYQI"],"uri":["http://zotero.org/users/local/MV6HjRQT/items/7V4TKYQI"],"itemData":{"id":10,"type":"article-journal","title":"The Three Principles of Marketing","page":"275","source":"Zotero","language":"en"}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (The Three Principles of Marketing n.d.). It also helps them to identify the greater cost economies, so as to serve an expanded global market from the central location ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"qfGTQ0kF","properties":{"formattedCitation":"(How to Go Global: Challenges, Considerations and Tips n.d.)","plainCitation":"(How to Go Global: Challenges, Considerations and Tips n.d.)","noteIndex":0},"citationItems":[{"id":17,"uris":["http://zotero.org/users/local/MV6HjRQT/items/BW56ETJN"],"uri":["http://zotero.org/users/local/MV6HjRQT/items/BW56ETJN"],"itemData":{"id":17,"type":"webpage","title":"How to Go Global: Challenges, Considerations and Tips","URL":"https://www.businessnewsdaily.com/8211-expand-business-internationally.html","accessed":{"date-parts":[["2019",9,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (How to Go Global: Challenges, Considerations and Tips n.d.). Moreover, it leads the company to leverage valuable skills developed in operating at international level, and transfer them elsewhere in the firm for maximizing the rate of return ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"y4ww2HKb","properties":{"formattedCitation":"(Twarowska and K\\uc0\\u261{}kol 2013)","plainCitation":"(Twarowska and Kąkol 2013)","noteIndex":0},"citationItems":[{"id":14,"uris":["http://zotero.org/users/local/MV6HjRQT/items/XTTSD6UD"],"uri":["http://zotero.org/users/local/MV6HjRQT/items/XTTSD6UD"],"itemData":{"id":14,"type":"paper-conference","title":"International Business Strategy-Reasons and forms of expansion into foreign markets","container-title":"Manage. Know. Learn. Int. Conf","page":"1005-1011","author":[{"family":"Twarowska","given":"Katarzyna"},{"family":"Kąkol","given":"Magdalena"}],"issued":{"date-parts":[["2013"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Twarowska and Kąkol 2013).

Leverage product and competencies

The next step towards developing the competencies is to leverage the product and competencies of the company. The factors leading the firm going internationally profitable and leverage the products and competencies includes change in customer interference, technological advancement and competitor’s positioning ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"e0jR8pQP","properties":{"formattedCitation":"(Core Competencies | An Overview 2014)","plainCitation":"(Core Competencies | An Overview 2014)","noteIndex":0},"citationItems":[{"id":"76BvuQSz/ElIw8coS","uris":["http://zotero.org/users/local/55bqtMd8/items/XR5IGVA7"],"uri":["http://zotero.org/users/local/55bqtMd8/items/XR5IGVA7"],"itemData":{"id":112,"type":"webpage","title":"Core Competencies | An Overview","container-title":"Cleverism","abstract":"We are going to explain the concept of core competency in this article and how to generate a competitive advantage for a company. This article will also tell you what contemporary views on core competencies do exist. We will provide a summary of a few cases and studies to describe the complexities of the concept. The term core competency was coined by Dr.C.K Prahalad and Prof. Gray Hamel in 1989. They took examples of various Japanese firms and compared them with their American counterpart. Competence based strategy is the part of an overall strategy that is concerned with integrating technology, know-how","URL":"https://www.cleverism.com/core-competencies-overview/","language":"en","issued":{"date-parts":[["2014",5,13]]},"accessed":{"date-parts":[["2019",9,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Core Competencies | An Overview 2014). Leveraging resources and the development of core competencies requires investment in governance process, technology and collective learning ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"LUTANbpz","properties":{"formattedCitation":"(Pitt and Clarke 1999)","plainCitation":"(Pitt and Clarke 1999)","noteIndex":0},"citationItems":[{"id":16,"uris":["http://zotero.org/users/local/MV6HjRQT/items/W4WI9A78"],"uri":["http://zotero.org/users/local/MV6HjRQT/items/W4WI9A78"],"itemData":{"id":16,"type":"article-journal","title":"Competing on competence: A knowledge perspective on the management of strategic innovation","container-title":"Technology Analysis & Strategic Management","page":"301-316","volume":"11","issue":"3","author":[{"family":"Pitt","given":"Martyn"},{"family":"Clarke","given":"Ken"}],"issued":{"date-parts":[["1999"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Pitt and Clarke 1999). The profitability of firms that is operating internationally depends up on the quantity and quality of goods and services sold and the firm’s core competencies. It allows the firms to cut the minimize the cost of value creation and premium pricing is possible by creating perceived value ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"dYkkdLxV","properties":{"formattedCitation":"(Hill 2008)","plainCitation":"(Hill 2008)","noteIndex":0},"citationItems":[{"id":"76BvuQSz/WvX1bieg","uris":["http://zotero.org/users/local/55bqtMd8/items/FZJR3ADA"],"uri":["http://zotero.org/users/local/55bqtMd8/items/FZJR3ADA"],"itemData":{"id":116,"type":"article-journal","title":"International business: Competing in the global market place","container-title":"Strategic Direction","volume":"24","issue":"9","author":[{"family":"Hill","given":"Charles"}],"issued":{"date-parts":[["2008"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Hill 2008).

The other factors leading the firm to leverage its product and core competencies includes location economies, experience effects which refers to an efficient decrease in production costs that incurred throughout the life of the product, and learning effects for cost saving from learning by doing, and leveraging subsidiary skills ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"oWvqarsh","properties":{"formattedCitation":"(Leveraging Products And Competences Marketing Essay n.d.)","plainCitation":"(Leveraging Products And Competences Marketing Essay n.d.)","noteIndex":0},"citationItems":[{"id":"76BvuQSz/owfhIgwh","uris":["http://zotero.org/users/local/55bqtMd8/items/EZMRC7QB"],"uri":["http://zotero.org/users/local/55bqtMd8/items/EZMRC7QB"],"itemData":{"id":114,"type":"webpage","title":"Leveraging Products And Competences Marketing Essay","container-title":"UKEssays.com","abstract":"The process of global expansion is where regional cultures, societies and economies integrate on a global network through trade, transportat...","URL":"https://www.ukessays.com/essays/marketing/leveraging-products-and-competences-marketing-essay.php","language":"en","accessed":{"date-parts":[["2019",9,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Leveraging Products And Competences Marketing Essay n.d.).s

references

BIBLIOGRAPHY Last name, f. M. (year). Article title. J ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY “core competencies | an overview.” 2014. Cleverism. Https://www.cleverism.com/core-competencies-overview/ (september 28, 2019).

Hill, charles. 2008. “international business: competing in the global market place.” Strategic direction 24(9).

“how to go global: challenges, considerations and tips.” Https://www.businessnewsdaily.com/8211-expand-business-internationally.html (september 28, 2019).

“leveraging products and competences marketing essay.” Ukessays.com. Https://www.ukessays.com/essays/marketing/leveraging-products-and-competences-marketing-essay.php (september 28, 2019).

Pitt, martyn, and ken clarke. 1999. “competing on competence: a knowledge perspective on the management of strategic innovation.” Technology analysis & strategic management 11(3): 301–16.

“the three principles of marketing.” : 275.

Twarowska, katarzyna, and magdalena kąkol. 2013. “international business strategy-reasons and forms of expansion into foreign markets.” In manage. Know. Learn. Int. Conf, , 1005–11.

“understanding the difference between profitability and rate of return.” Https://www.myabcm.com/blog-post/understanding-difference-profitability-rate-return/ (september 28, 2019).

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