Business Strategy for Foreign Expansion Admission Essay

Business Strategy for Foreign Expansion
A brief review of the business strategy needed for expansion into a foreign market.
# 154173 | 747 words | 3 sources | 2015 | KE
Published on Apr 21, 2015

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From the Paper:

"Globalization has widely been viewed by many entrepreneurs as a major reason why the business around the world is changing fast. Firms venture into new regions or countries with the anticipation of both diversification and growth of its daily dealings. Recently many firms have gained competitive advantage by going into new regions or countries. This however can be attributed to the fact that such firms have managed to overcome trade barriers that occur internationally. It is important to note that expansion of a business into a new region faces a myriad of problems which prove to almost being inevitable. There however appears to be a huge difference between venturing into a new region and into a country.Different countries will offer different set of risks due to unique business factors and legislation. Amongst the major competitive advantages that a firm enjoys as a result of venturing into a new region include:cheaper labor, new markets and improved profits.
"The first step involves selecting an expansion approach. According to Martinez (2012), a firm venturing into a new market seems to be agreat idea but one has to keep abreast of the risks that consequently come with it. A firm could be doing good financially in a local market mainly because the entrepreneur has ample knowledgeon the region that the business has been setup. A firm venturing into a new region or country suffers increased cost due to hiring of more employees and increased competition for the market share. It is therefore wise to approach new markets with utmost caution. Martinez (2012) finds that the strategy an entrepreneur adopts while venturing into new nations should be in line with the niche that best suits such a firm. This is because expansion of a business geographically has many benefits that accrue but only will suit a particular type of trade."

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