Globalization has spread its roots across continents and countries. As technology drives the world closer through enhanced communications, cheaper travel and increase capital mobility; globalization continues to impact economies all over the world. In order to continue their sustenance and expand to newer markets, companies need to explore global markets. Successful expansion in a global territory requires that the company adapts to the international business strategy custom made for their company. An international business strategy tells a company how to deal with expansion into foreign markets. It deals with relations with international stakeholders like employees, customers, partners, governments etc. Organizations are hiring professionals who have an international business certification or an international business strategy certificate to take on global responsibilities.
A global business manager needs to work on various elements such as the adaptation of brand message according to the culture of the country where the company is expanding. The company needs to understand the political and social scenario through a proper analysis of the environment of the country. The company should assess the competitive scenario of the relevant industry in the new geography. The distribution models and supply chain management prevalent in the country will help the company understand the adaptation that they will have to make. They need to figure out their production plan and the products they want to launch according to market dynamics. An international business strategy helps the company in all the above-mentioned aspects. It also prepares the international business manager to face the challenges that come with it.
International business strategy can be of four types – international, multi-domestic, global and transnational strategy. Using an international type of business strategy means that the company will focus on exporting products and services to foreign markets or importing goods and services from other countries. In a multi-domestic business strategy, the company must invest in establishing its presence in a foreign market and customize its products to suit local preferences. The third type of international business strategy is the global one. In this case, the company leverages economies of scale by creating operations and production units in different parts of the world to cut costs. The transnational type of international business strategy helps an organization function in different parts of the world by giving the decision-making responsibilities to the local units.
All types of international business strategy provide clarity on how to handle business across borders in a functional and efficient manner.