International Strategy
Four Strategies For Breaking Into The International Market
International strategy refers to selling products or services into foreign markets. It helps many organizations gain geographical diversification of businesses in foreign markets. Sean Hopwood, the CEO of Day Translations, Inc., in his article “Four Strategies For Breaking Into The International Market,” discusses the four core strategies of entering an international market, which include direct, indirect, hybrid, and business acquisition.
Direct strategy, which is similar to an exporting approach, allows companies to provide commodities or services directly to markets outside their home country. Hopwood (2019) illustrates that organizations operate their sales without the help of an alliance in foreign markets. However, the business may recruit workers in the outside markets to control transactions or monitor the market.
Hitt et al. (2016) coincides with this perspective and stipulate that a direct or export strategy is advantageous, particularly for small businesses. Exporting helps organizations avoid the cost of establishing companies in foreign markets they choose to compete in. More so, using an international cost leadership strategy when using the direct approach positively impacts a company’s performance. Also, using a global differentiation strategy with more significant economies of scale to emerging foreign commercials facilitates optimal success. Therefore, these factors help emerging organizations with strong management teams and market orientation abilities become more prosperous.
This approach is beneficial because it helps organizations uphold complete control of their operations and choices. It is quick to plan and execute measures as the executive deems suitable. However, Hopwood (2019) illustrates that the main challenge with direct strategy is that the organization shoulders all costs and risks associated with the business. Furthermore, prospering in foreign markets is significantly challenging without the help of local professionals or established global business alliances. Organizations often export to nations nearest to their resources to evade substantial transportation costs and take advantage of the similarity between geographic neighborhoods.
Reference
Hopwood, S. (2019). Council Post: Four Strategies For Breaking Into The International Market. Retrieved from https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2019/08/05/four-strategies-for-breaking-into-the-international-market/?sh=18a7ceeb5cff
Hitt, M. A. R., & Michael, R. (2016). Duane Ireland, Robert E. Hoskisson. Strategic management: Competitiveness and globalization (concepts and cases). 12th Ed. Ohio: Thomson Higher Education.
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Question 
Week 10 literature review
Our topic of the week focuses on International Strategy. For this week’s current events discussion, I would like for you to identify an article that relates to the readings. In your post, you are to surmise the article, make the connection between the article and the weekly reading assignment, and share a link to the article. Please comment on your classmates postings as appropriate.
International Strategy
Note that articles should come from reputable business publication such as: The Wall Street Journal, Crains, Fortune, Forbes, The Economist, or the like.
This week the readings/videos focused on the topic of International Strategy.