Arcelik's Business Expansion

International expansion enables companies to potentially enhance their competitiveness through and through with(predicate) securing access to new markets, technologies, brand names, imagerys and strategic assets abroad by utilizing a variety of strategies, including product and technological diversification crossways fields and geographical sites (Cantwell and Piscitello 1999). These potential enhancers of competitiveness would not be available to firms that elected to stay focused on their invite domestic economy, potentially missing extinct on opportunities that ar available only to firms that are prepared to expand worldwidely opportunities such(prenominal) as becoming integrated in global note value chains or attracting global customers. A combining of pull and pull factors is responsible for international expansion and these labor out be examined below. This report is to propose the strategy for future carrying into save upon evaluation of the driving factors an d available options. Asset-Exploitation and Asset-Seeking There are empire modes to engage in international business activities with exporting with the worst risk to direct foreign investment on the former(a) finish up of the spectrum.

According to the conceptual framework by Dunning (1981, 1988), a association chooses among three modes of internationalization (exporting, licensing and FDI) on the basis of three disparate but interrelated advantages (ownership, location and internationalization). While in compliance to the Uppsala model, internationalization is incremental, sequential and attainment b ase, occurring in stages, based on cumulativ! e market knowledge and commitment (Erdilek 2008), Arcelik has the mental king to operate in volatile and turbulent environments, giving a competitive advantage to adapt and survive. At the same time, Mathews (2006) spearheaded slightly other perspective of asset seeking and developed the resource linkage, leverage, and learning framework and argues that firms internationalize to acquire strategic...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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