STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETS

Assalamualaikum ! may Allah bless you always ! :) okay don't too much play friends! it's 7th week lecture already... :D this week i have learnt about the chapter of strategies for competing in international markets. So, when we talk about international markets, of course we want to know about why companies decide to enter foreign markets? there are many reasons which is to gain access to new customers. Expanding into foreign markets offers potential for increased revenues, profits, and long-term growth and becomes an especially attractive option when a company encounters dwindling growth opportunities in its home market.

The second reasons is to achieve lower costs through economies of scale, experience, and increased purchasing power. Besides that, they want to further exploit its core competencies. The another reasons is to gain access to resources and capabilities located in foreign markets. in addition, they also want to spread its business risk across a wider market base. 

From this chapter also, I have learnt about why competing across national borders makes strategy-making more complex. This is because of different countries have different home-country advantages in different industries. Second, there are location-based advantages to conducting particular value chain activities in different parts of the world.Third, different government policies, tax rates, inflation rates, and other economic conditions. Fourth, companies face risk due to adverse shifts in currency exchange rates when operating in foreign markets. And the last but not least, differences in buyer tastes and preferences present a challenge for companies concerning customizing versus standardizing their products and services.

okay, in tutorial class, Madam Huda discussed about the previous case study that Miss Ummi upload in GOALS. she said that there have marks for those who participating in making SWOT and TOWS analysis in front of class. So many my members participated ! haha...