Describe and provide examples of four different strategies for reaching global markets.
There are different strategies utilized by businesses to reach out to the global market. Different companies may use different strategies depending on their business demands and mode. In the following, I would provide an overview of four strategies for reaching global market.
In this strategy, a business would produce a product in its home country and export to other countries for sales. One of the example is the export of Japanese cars to countries that do not have the factories to make or assemble these cars.
Foreign licensing allows a foreign company to produce and market the products of a company in a country other than its own. The prime examples are Coca Cola and Pepsi Cola who license companies to produce and market their products (McGowen , Marce & Williams, 2013).
This strategy allows a franchise in other countries to produce and market a product within specific operating requirements by the parent organization. For example McDonalds and Pizza Hut sell their franchising rights in many countries of the world.
This is when a company itself goes to a foreign country and establishes its production plants in these countries. For example Intel is building a 2.5 billion dollar facility in China.