Name : Jaiswal Yash Chandrabhan

Roll no. : MS2122034

Subject : Strategic Management
Topic Name : Internationalization Strategies
Class : SY.MMS
Semester : 3rd
Specialization : Finance
Name of the Faculty : Prof. Shripad Bapat
INTERNATIONALIZATION
STRATEGIES
 Definition : An International strategy is a strategy through which the firm sells its goods or services outside
its domestic market. International markets yield plenty of new opportunities for your business to grow. With an
internationalization strategy your business could see:

1.Increase in market size and emergence of new markets

2.Competitive advantage by location 
3.Global brand recognition
4.Global customer satisfaction

Business internationalization can have huge benefits, but that doesn’t mean it’s risk-free. You’ll have to
consider some risks when adopting an internationalization strategy, including increased costs, barriers to trade,
and lack of sensitivity to local demand.
 The four international business strategy are
1. International Strategy
• The international strategy is arguably the most common of the four. 
• Often called an exporting strategy, it focuses on exporting products and services to foreign
markets while maintaining production headquarters at home. This means companies avoid the
need to invest in staff and facilities overseas. Business objectives are mainly towards the home
market, but with some relating to the international market. 
• There are some challenges that come with adopting the international strategy, such as initiating
sales offices abroad, managing global logistics, and making sure that your company complies
with foreign trade regulations.
2. Multi-domestic
• The multi-domestic business strategy invests in establishing a presence in a foreign market and tailoring its products
to the local market. Companies adapt their products and offerings and reposition their marketing strategies to
engage with a foreign audience. This includes taking into account foreign customs, traditions, and cultural traits. 
• With a multi-domestic business strategy, company headquarters are often maintained in the country of origin.
However, the company may establish localized headquarters overseas from which they can more easily manage
relations with foreign customers.
3. Global
• When companies adopt a global business strategy they treat the world as one market and leverage economies of
scale to boost reach and revenue. 
• Global companies have little local variation, as products and services are homogenized to reduce costs while
reaching as many people as possible. Usually, these companies have a central office or headquarters in their country
of origin, while also establishing operations in foreign markets.
• Although most aspects of the goods and services are homogenized, small changes might need to be made. For
example, fast food companies like McDonald’s or Burger King might have to alter, add, or remove certain menus
from their menus to suit the needs of local markets. Pharmaceutical companies are a great example of a global
strategy in use.
4. Transnational 
• Now things get a bit more intricate. The transnational business strategy combines elements of global and multi-
domestic strategies. This means that the business is still operating from its headquarters in its country of origin,
however, it also allows the company to expand with full-scale operations in foreign markets. 
• Transnational companies sell their products and services in multiple countries across the globe. The difference lies
in how the product is marketed in each country. A transnational product is the same regardless of the country in
which it is sold. It doesn’t change to suit a new market - the product is the same everywhere and isn’t modified to
appeal to local customs or preferences.
THANK YOU