International business strategy refers to the plans and actions that a company takes in order to successfully enter and operate in foreign markets. Developing an effective international business strategy is critical for companies that want to expand their operations beyond their domestic borders, as it allows them to take advantage of new opportunities, tap into new customer bases, and diversify their revenue streams.
One example of an international business strategy is the "standardization" approach, which involves a company adapting its products or services to fit the needs and preferences of the local market, while still maintaining the same overall brand image and corporate culture. This approach is often used by companies that have a strong brand presence and a loyal customer base, as it allows them to leverage their existing reputation and customer loyalty to drive sales in new markets.
Another example of an international business strategy is the "adaptation" approach, which involves a company heavily customizing its products or services to fit the unique cultural, social, and economic characteristics of the local market. This approach is often used by companies that are entering a new market for the first time, or that are trying to differentiate themselves from local competitors.
One company that has successfully implemented an international business strategy is Nike, the global sports apparel and footwear company. Nike has adopted a hybrid approach, combining elements of both standardization and adaptation in its international expansion efforts.
For example, Nike has standardized its branding and marketing efforts across all of its international markets, using the same slogans, logos, and advertisements to promote its products. However, the company has also adapted its product offerings to fit the specific needs and preferences of different markets. For example, Nike has released specialized soccer cleats for the Latin American market, and has developed a line of running shoes specifically for the Asian market.
Overall, developing an effective international business strategy is critical for companies looking to expand their operations into foreign markets. By carefully considering the needs and preferences of the local market, and adapting their products and marketing efforts accordingly, companies can successfully enter and thrive in new markets around the world.