International Management

Any company that aspires to industry leadership in the 21st century must think in terms of global market leadership. An international market is defined geographically as a market outside the international borders of a company's country of citizenship. Differing market conditions across countries influence a company’s strategy choices in international markets.

Typically, a company will start to compete internationally by entering just one or perhaps a select few foreign markets, selling its products or services in countries where there is a ready market for them. But as it expands further internationally, it will have to confront head-on the conflicting pressures of local responsiveness versus efficiency gains from standardizing its product offering globally.

A company’s international strategy is its strategy for competing in two or more countries simultaneously. As a rule, most companies that operate internationally endeavor to employ as global a strategy as customer needs and market conditions permit.

Companies that compete internationally can pursue competitive advantage in world markets by locating their value chain activities in which-ever nations prove most advantageous. Profitability in emerging markets rarely comes quickly or easily. New entrants have to adapt their business models and strategies to local conditions and be patient in earning a profit.