Resources
When implementing a global strategy, it is necessary to determine the company’s resources available for international expansion, taking into account the competitive advantage that it may have. For example, a company has particular patents or brands that can be used in international expansion. Only then should the company define its international and strategic goals. For some companies, this may seem strange – wait to start immediately by setting a goal, that is, with what the company wants to achieve internationally (Pananond et al., 2020). This is because the goals should be set in a realistic context of what opportunities exist in the market and what resources the company has for its international expansion.
After researching which markets around the world present the best opportunities, evaluating its resources, and defining goals, the company chooses a country or region for expansion and develops a way to enter this market. In practice, any organization trying to
go beyond the country’s borders will need a wide range of diverse resources, which are not necessarily better than competitors but are just as crucial for foreign economic activity. For example, a well-designed distribution network for a product may be similar to that of competitors (Pananond et al., 2020). However, it will also be necessary to implement the product in the foreign market. One of the most critical resources that should be considered when forming a strategy for foreign economic activity is human resources – one should be aware of the knowledge, skills, time, and personal costs necessary to obtain good results.
Global Market
It is worth noting that China is the chosen country for expanding international activities. Many laws in force in this country may hinder the development of a global strategy. Many resources, such as finance, human resources, and patents, may be subject to various prohibitions, significantly complicating entry into this market. Consequently, such prohibitions affect the decision-making on the global strategy implementation. However, to maintain the organization’s competitive strategy, it is essential to consider a number of features that will allow it to continue expanding in the international arena. After evaluating the company’s own resources, it is necessary to determine the purpose of entering the foreign market (Pananond et al., 2020). Governments and trade associations offer resources for faster and more successful market entry. Analyzing government reports to see how a product or service will resonate with the local consumer base is necessary. Thus, based on these factors and aspects, it is necessary to adjust the global strategy.
Thus, the company lays the foundation for determining the desired exit strategy and developing specific marketing activities to achieve its business goals. Depending on the available resources, the scale of the global strategy is determined: an aggressive strategy of mass capture or a gradual expansion of presence in the market. It is necessary to consider the internal export potential of the enterprise. First of all, the analysis of the company’s readiness for export supplies begins with people. They are the critical resource of any business. Separately, it is necessary to assess the ability of the enterprise to produce and accumulate manufactured products that meet international requirements and are not inferior to foreign ones in quality (Pananond et al., 2020). It must be able to fulfill the conditions of the order. The company will have to work out the issues of transport and packaging, warehousing and transportation of finished products. Moreover, it ensures the supplier’s ability to provide the necessary volumes of raw materials for the production of products.
Reference
Pananond, P., Gereffi, G., & Pedersen, T. (2020). An integrative typology of global strategy and global value chains: The management and organization of cross‐border activities. Global Strategy Journal, 10(3), 421–443. Web.
