Why the Choice of Location Is Critical When Expanding Globally Free Essay Example, 1750 words

The entry of a firm in a foreign market has to be designed using specific criteria -the firm's size, the prior experience in regard to similar plans, the level of competitiveness in the global market and the culture of both the host and the target market are used as the criteria on which the choice of a method of entry in a foreign market is based. The method of entry chosen is also highly influenced by the overall international strategy of each firm (Kotabe and Helsen 2009, p. 205). For example, there are firms that aim to keep full control of their establishments in a foreign country (Kotabe and Helsen 2009). On the other hand, certain firms seem to emphasize rather on the employment of local resources rather than on securing control over their units internationally (Kotabe and Helsen 2009). In any case, the decision of a firm for expanding internationally needs to have the support of the stakeholders. The conflicting interests of stakeholders could highly affect the success of a firm s internationalization efforts unless a strategy is implemented for handling these interests effectively within the shortest possible time framework (Triantis 2013). We will write a custom essay sample on Why the Choice of Location Is Critical When Expanding Globally or any topic specifically for you Only $17.96 $11.86/page 2007); c) the business strategy approach ; in the context of this approach, a firm would choose a method of entry that could be aligned with the firm s internal and external environment, as this environment affects the firm s strategy.