yips drivers of globalization international business

In this stage, companies start to disaggregate the production process and focus each activity in the most advantageous location. The third stage ( value chain disaggregation The stage in globalization in which firms start to disaggregate the production process and focus each activity in the most advantageous location.) represents the next step in the company’s globalization of the supply-chain infrastructure. Under this scenario, different locations begin to specialize in different products or components and trade in finished goods. In the second stage ( product specialization The transfer by firms of the full production process of a particular product to a single, low-cost location and the export of the goods to various consumer markets.), companies transfer the full production process of a particular product to a single, low-cost location and export the goods to various consumer markets.

To gain access to local customers, however, they often need to establish a production presence, either because of the nature of their businesses (as in service industries like food retail or banking) or because of local countries’ regulatory restrictions (as in the auto industry). This literature reviews the various drivers of internationalisation along with the importance of alliances and joint ventures in today’s world.In the first stage (market entry), companies tend to enter new countries using business models that are very similar to the ones they deploy in their home markets. For companies to stay competitive in their respective environment they need to go international (Hart, 1999). Internationalisation has been defined as developing networks of business relationships in numerous countries by ways of extension, penetration and integration, which requires the commitment of resources and the adaptation to international markets. Theories of internationalization inherently deal with questions of business development and strategy which this work tries to analyse from the perspective of the two industries. The main aim of this literature is to find out the reasons why companies choose to go international, especially in grocery retailing and the civil aerospace manufacturing business. The internationalisation of a firm is a complicated process rooted in the history of the firm and its administrative heritage as well as in its general strategic planning. However, over the last few decades, most companies have started to run for globalisation and this in turn has resulted in internationalisation of most business organizations (Margardt, 2007). This was the main reason behind failure of internationalization.

The cost to operate worldwide was very high in the olden days and most countries had no knowledge about the culture, language and demands of foreign countries.

Yips drivers of globalization international business