International Business: The Road to Globalization

Since globalization had become an important issue, many companies are going global. However, the route to international business was not always planned and frequently lack objective. In order to become sufficient in the international market, companies must have clear objective and direction, as well as planned strategies to make them successful.

Normally, people think that conducting business at foreign country is far more hazardous and unsecured compare to conduct business in domestic country. However, there are certain risks and problems involved no matter where business is conducted, it just depends on how serious the risks are and how people faced the problems that occurred. There are pros and cons for doing business in domestic country or at foreign country. If companies keep on trading in the same domestic market, their business wouldn't have significant growth or profit increased. The existing market doesn't have the potential to grow anymore. When one market lost its potential to continue growing, that's mean it might faced the risks of profit declining and had come to an end for their product life cycle. The market size of their business will remain the same and they cannot increased their market power and profitability. Business will face serious threat if customer is bored with the existing products and services and customer might find another kind of substitutes or new products.

Thus,

when companies are approaching the end of the product lifecycle, they need to find another market to bring in their products or services in order to start a whole new lifecycle. Product life cycle is one of the main reasons that made business entering a foreign market. Mostly, the new market that they need to development is a completely new market in foreign country. New market has more potential to grow and it also has the potential to attract new customer base and increased the volume of sales.

In conclusion, involving in a new foreign market is a great opportunity for the company to gain more market power and market shares. If the branding of the products is successful at foreign country, a company's products might become a well know brand and continue to expand to other country. This will improve the business significantly and the reputation of a company will become greater and greater. The goodwill of the company will also increase since outsiders evaluate them as a successful company that can perform well outside their own country.