STAGES OF

INTERNATIONALIZATION
STAGES OF INTERNATIONALIZATION

1. Domestic-market establishment
► Test products and fine-tune performance
► Ensure that a strong foundation has been built in the domestic market
upon which to base future export-market-expansion activities
STAGES OF INTERNATIONALIZATION

2. Export research and planning

► Target a country similar to their own in language, financial structures, legal
and economic systems or culture
► Identify potential problems and weaknesses
STAGES OF INTERNATIONALIZATION

3. Initial export sales

► Test the market
► Develop markets in phases
► Monitor progress and make necessary changes
► Become familiar with the mechanics of exporting (documentation,
distribution channels, transportation and collections, government
regulations)
► Get to know the customer target group
STAGES OF INTERNATIONALIZATION

4. Expansion of international sales

► Planning for larger orders and expanded activity should follow

► Market research
► Aggressive participation in trade shows
► Potential local partners
STAGES OF INTERNATIONALIZATION

5. Investment abroad

► Open local office

► JV
► R&D or production
► Increased interaction with local public, government, community