Formulating Strategy

Formulating Strategy Student Name University Course Professor Name Date Formulating Strategy Discuss why companies go international, giving reaction and proactive reasons Companies with a successful domestic base market for their goods and services may seek to expand their market internationally. This expansion allows them access to a wider customer base and markets, thus increasing their revenue potential. Diversification to global markets mostly starts due to high customer demand or to provide solutions to problems encountered during product shipping to the countries (Deresky & Miller, 2017, p.187). There may be country-specific policies on the production of goods locally and laws to reduce importation, which leads companies to comply forcefully by doing production locally or closing business (Pedersen & Tallman, 2022, p. 205). In addition, early entry into new markets can provide companies with a competitive advantage through the establishment of customer loyalty and brand recognition before others join the market. Give examples of the impact of the internet on small business Over time, access to international markets was expensive and complex; however, through the internet, e-commerce has been on the growing trend, giving a boost to small businesses. The Internet has reduced market entry barriers, provided cost-effective marketing, enhanced customer engagement, and streamlined business processes and collaborations. According to Ryan Powell’s example, some customers generate up to 70% of their money from external markets due to e-business (Deresky & Miller, 2017, p. 208). The use of websites, emails, voice-over-internet services, and other interactive technology with partnerships on delivery services with third-party companies has led to the reach of a wide number of customers with ease (Nambisan et al., 2019, para. 3). This change has led companies such as Everest SA to sell coffee for record prices in an i...