UPN, PASIÓN POR

TRANSFORMAR VIDAS

GLOBAL MARKET PERSPECTIVES

Week 7 :
Innovation in the
internationalization processes of
companies

jorge.coronel@upn.pe UPN.EDU.PE
Purpose of the lesson

At the end of this session, the participant will be able to:

I. Understand why companies engage in the international

context
II. Why to go International?
III.Analyze Global Alliance Strategies
Innovation in the internationalization
processes of companies
1. Mode of entry to international markets
2. Local operability, global marketing
3. Global alliances and implementation
strategies
Entry to International
Markets
Internationalization
• Process by which companies go to foreign
markets to sell their products and services
• It is a process that goes beyond exporting.
• It is about settling in another geographical
area, but not in a specific way, but
permanently.
Internationalization
• The internationalization of companies
consists of using the available resources in a
strategic way to take advantage of the
different opportunities that are being offered
in other markets.
Internationalization
• The decision of when to internationalize the
company affects the strategic level of
decision, that is, the long-term business
activity.
• When the company makes the decision, it can
go two ways:
❑ Position your own products or services in
another country.
❑ Develop new products or services to
enter it.
How is the internationalization of a company carried
out?
• The decision of when to internationalize the
company affects the strategic level of decision,
that is, the long-term business activity.
• When the company makes the decision, it can
go two ways:
❑ Position your own products or services in
another country.
❑ Develop new products or services to enter
it.
 How to internationalize?
• Analyze your offer.
• You have to think very well if the
product you are going to offer has an
added value. "If you are not going to
offer a product with added value to
someone from another country then
stay home because otherwise you are
going to lose a lot of money.
 How to internationalize?
• Financial disposition.
• If you know that this market is interested in
your products, then you have to see if you
have a financial disposition.
• "It is important to think about whether you
have the adequate financial resources,
otherwise you will have to look for them. But
it is also important to know if you have
adequate personnel to carry out the
negotiations"
 How to internationalize?
• Adaptation.
• One thing that often goes unnoticed is the
adaptation that entrepreneurs must make to their
product or service, depending on the market they
enter.
• "Sometimes we think that our product will work the
same in all markets without realizing that we have to
change some details, maintaining the value of the
product," he said.
 How to internationalize?
• Integration.
• The owners of a company must be committed to
the objective, as well as the entire management
team and workers
• Cultural differences
• According to the expert, as new markets open up,
cultural differences play a fairly important role.
• Many businesses fail not because of an offer of
value, but because the exporter and the consumer
do not understand each other. For this reason, it is
also necessary to work with people who live in the
country to which one exports"
 How to internationalize?
• Adapt the language used for each country
• Google, for example, is a global company that operates in hundreds of countries. One of
the reasons for the good positioning of the company is due to the customization of the
strategy used in each country, emphasizing aspects of the local culture.
• In Mexico and Colombia, Google prepares specific doodles for national holidays. The
same is done in other places where the company operates.
Local operability and
Global Marketing
 Global Marketing
• Global marketing includes the marketing
strategies of companies that target the entire
world as their stage of operations.
• The goal of global marketing is to allow the
company's products or services to reach new
markets in many countries through an outreach
and marketing opportunity.
 Marketing Global x Marketing International
• If a company has the objective of being present in a
specific country, it is already implementing an
international marketing strategy.
• In turn, Global Marketing is used when the
company wants to expand its operations to many
totally different countries, with the idea of being
fully recognized in the world.
• Examples of global brands: Mc´Donalds, Nestlé,
Apple, Sony, Coca Cola, etc.
Marketing Global x Marketing International

International
Local Marketing Global Marketing
Marketing

• Strategy oriented to • Different strategies • One world, one

a target market in for each country in market
the country of particular. • Standarized
origin • Adapted products products
• A single strategy for
all countries
Global Alliances
 Global Alliances
• A global strategic alliance is usually established
when a company wishes to edge into a related
business or new geographic market, particularly
one where the government prohibits imports in
order to protect domestic industry.
• Alliances are typically formed between two or
more corporations, each based in their home
country, for a specified period of time.
• A Global Strategic Alliance Is Not an Acquisition
 Global Alliances
• Their purpose is to share in the ownership of a
newly formed venture and maximize competitive
advantages in their combined territories.
Ten Advantages of the Global Strategic Alliance
1. Get instant market access, or at least speed your
entry into a new market
2. Exploit new opportunities to strengthen your
position in a market where you already have a
foothold
3. Increase sales
4. Gain new skills and technology
5. Develop new products at a profit
Ten Advantages of the Global Strategic Alliance
6. Share fixed costs and resources
7. Enlarge your distribution channels
8. Broaden your business and political contact base
9. Gain greater knowledge of international customs
and culture
10. Enhance your image in the world marketplace
Six Disadvantages of the Global Strategic Alliance
1. Weaker management involvement or less equity
stake
2. Fear of market insulation due to the local
partner's presence
3. Less efficient communication
4. Poor resource allocation
5. Difficult to keep objectives on target over time
6. Loss of control over important issues such as
product quality, operating costs, employees, etc.
Joint Venture
A joint venture is a business arrangement in which two or more parties agree to
pool their resources for the purpose of accomplishing a specific task. This task
can be a new project or any other business activity.
Joint Venture
Do you know any Joint Venture?
Conclusions
• Internationalization is the process by which companies go to foreign markets to sell their
products and services.
• Global marketing includes the marketing strategies of companies that target the entire world as
their stage of operations.
• International Marketing is applying different strategies for every country
• Global Marketing is applying the same strategy for all markets
• A global strategic alliance is usually established when a company wishes to edge into a related
business or new geographic market
Thank you !!!