XYZ Ltd Company

XYZ Ltd Company

My company being XYZ ltd I am planning to make it go global, which is based in the United States. America is a massive market for almost everything, but it makes it hard for entrepreneurs, but most of the companies can go global through international growth. The paper is going to talk about variables needed to be considered while developing a list of potential companies, the steps needed, the challenges companies face in their early expansion, and the categories of market entry strategies.

Variables needed. Market analysis and the environment. Putting together the potential concentration of my target market in the shortlisted countries and analyzing country risk, GDP growth, operational difficulties, market appeals, political factors, and multiple international indexes and secondly analyzing the competition. Through analyzing the economic evaluation, identifying the main competitor is the main factor, for example, the distribution channel, the sales over the years, expansion strategy and development plans (Yip, Loewe & Yoshino,1992). Besides, is the demand analysis. Analyzing the potential and the current demand for the product I am planning to put in the market and the expected evolution.

Steps to consider while going global. Culture. Understanding the culture of my targeted countries is the priority; for example, knowing what they value and who lives in the community is very important. Secondly are regulatory barriers and legal. Understanding the regulations and the local laws to make the business flexible is very important through this, I will seek advice from an experienced counsel (Koslow & Scarlett,1999). Besides, foreign government consideration. Considering other aspects related to other local government authority is an essential factor, for example, communication, money trade rates, assurance approaches for business, and access to reasonable capital. Furthermore, it is the Business case. Understanding the market trends, economic feasibility, financial cost patterns, and market forecasts are also essential to factor and also developing liaison relationships and partnerships with suppliers and assisting firms.

Challenges faced by companies. Language and cultural barriers. It hinders effective communication; the primary language used in different places may differ due to difficulty in expressing their needs and responding to requests. And, most importantly, adapting to the marketing strategy. Secondly is the local competition. Building partnerships and relationships with local partners and suppliers are a bit difficult at the initial stage (Yip, Loewe & Yoshino,1992). Furthermore, is compliance issues and Tax codes. At the initial stage dealing with regulatory and taxes may be hectic and time-consuming.

Categories of market entry strategies. Ownership. Having ownership of a company makes it responsible for the business failure or success and making the company owns a 100% stake. Secondly is Licensing (Koslow & Scarlett,1999). This is a major critical factor in which a foreign company can operate and agrees and get a permit to manufacture, process, and trademark its establishment. Furthermore, it is a joint venture. This is a process in which an enterprise shares ownership with two or more investors and controls the risks, property rights, operation, financial loss, and the benefits.

In conclusion, for a company to go global is also important to mark the advantages, for example, extending the sale life of the existing products, reducing the dependence in the market, exploiting corporate technology, and finally entering the global market place.