Foreign Market Entry Strategies And Multinational Corporations Essay.

For this task, you will research foreign market entry strategies and write a paper addressing the following:

• Describe and then evaluate why firms enter the global marketplace. Was the reasoning for entering a marketplace effective?
  
  
• Research and select an MNC firm and analyze, synthesize, and discuss how your firm applies any (and all, if applicable) of these strategies for market entry.
  
  
• Analyze, interpret, and discuss what relationships exist between a foreign investor and a host country government. Why are foreign investors important?
  
  
• Assess and evaluate the impact of the Internet and e-commerce in making an MNC global.

Describing and then evaluating why firms enter the global marketplace

Since the phenomenon like Globalization companies have looked trading in diverse regions in a different way. International trade has grown since the globalization emerged. Now firm wants their presence and operation in diverse countries. Expansion of the companies since the phenomenon has been enlarged and the business environment and the scene of the global market changed and become diverse. In the current assessment, there will be discussion over the how Multinational Corporation approached the global marketplace in changing the environment and what the strategies used by the company. The assessment also discussed how e-commerce has played a significant role in making MNC companies Global.    

Firms enter into the global markets to enjoy new export opportunities and the growth of their firms. Companies decide to enter the global market for a different of reasons, and at the time of entry in the global market, these different reasons need a variety of strategies and performance goals. Generally, every company follow standard development strategies to enter the global market. The most common method of market development is referred to as ‘increasing commitment’ in which a company enter in the market with the help of an independent local partner (Hanson et al. 2016). This strategy minimizes the risk of companies while they enter the new market and country. And this will also help companies to build a business in the country-market as quickly as possible. There are many more reasons why companies enter into the global market which are as follows:

1. Growth or increase in sales: When an organization enter into a global market then this will help them to increase their overall revenue. If the company has a unique product or services or any technological advantage which are not available to international competitors then this will result in their business success.
2. Growth and increase in profit: When a company enters into a global market then there sales increases and if the sales increases then the profit of the company will also increase as profit is directly proportional to sales. Because if the company is selling a unique product or they have any technological advantage then price pressure is far less.
3. Competitive strike: Sometimes a company enters into the global market, not because of the positive characteristics of the country which was identified in the market assessment product but because their competitors have moved to that country-market. This scenario is known as the follower move. In this scenario, the company enters into the new country-market because a major competitor has done so (Wunderlich, 2016). One more scenario which was frequently seen is ‘offense as defence’.  In this scenario, a company enter into the home market of the competitors because they have also entered into their home market earlier.
4. Incentives provided by the government:  It is commonly seen that the government incentivize i.e give cash to their country’s companies to export. Every government offers a wealth as a help when a company decides to begin exporting and enters into the global market. To help the companies or exporters to grow their business, Small Business Administration provide a guarantee loans of $50,000 to $100,000 as an export working capital program (Cabello et al. 2016).

Researching and selecting an MNC firm to analyze, synthesize, and discuss how your firm applies any (and all, if applicable) of these strategies for market entry

Coca-Cola has been Pioneer MNC firm which has operated in the global circuit from over decades now. The company had some very effective and efficient strategies which it follows in market entry strategy.  It can be said that the firm has diversified it's operations and are of trade through the effects of FDI, Joint Ventures and Network model. The following strategies  of Coca-Cola to enter international markets are discussed below:

1. Foreign Direct Investment: Coca-Cola has effectively used the FDI strategy to enter foreign markets through efficiency (Krugman, 2017). It is one of the biggest investment sources which can be done in a foreign country. FDI mean the company directly invest in manufacturing and service faculties of another nation to get directly engaged in the overall economy of the nation. Through such there is a good relationship between Coca-Cola and country in which FDI is made this helps Coca-Cola to build a good reputation with government of the country making the entry prominent and effective nature. It can be said that through use of FDI the company creates support from the market force on the country which directly helps the company to enter the market (Obstfeld, 2015).
2. Joint Venture:  Joint venture has been an effective tool through which many companies have exposed in different countries and areas. Joint venture makes it's easy for a company to enter a specific market to operate efficiently with proper support of a company which belongs to that particular region. Coca Cola has also used the strategy of the Joint venture in order to enter different countries within Asia. It can be said tha Joint venture is an effective way through which Coca Cola got associated with domestic companies in Asia and entered that particular market. In this way the both the companies in the joint venture were benefited which helped in the overall market entry of Coca-Cola. Coca Cola in this way got support of domestic company which know s about the market factors and assisted Coca Cola to settle down in a different market. In this way Coca Cola effect entered a diverse market in Asia which helped the form to expand in different regions of Asia (Coker, 2014).
3. Network Model: The company also used the Network model in order to expand in different countries. It is to be mentioned that under the network model the company use to create a good amount of network within the country before entering the market. This is done by forming an alliance with an another company and support the latter in there operational activities which then helps the company support with there operation within the nation. Coca Cola formed alliance with various company providing them financial and technological support in turn on which the company was helped in entering the nations market (Wright, 2016).  
4. Segmentation: Coca Cola has also used the segmentation strategy to enter global markets. It is to be said that segmenting in accordance to the geographic, demographic and Behavioral elements was done by the company to enter a new market for knowing the needs and demand of the population with that particular market (Robertson, 2017).   
5. Pricing strategy: The company also used the pricing strategy in order to enable the form to make the products of the company available to every class of the population which the country expanded this increased the consumer base of the company globally.
6. Product strategy: It can be said that the range of products and beverages which is offered by the company is diverse which the company has used as an ideal tool to expand in different parts of the world. In this way, the company has expanded in different areas and attracted customers building an effective consumer base there (Mowforth & Munt, 2015).  

In this way, the company has evidently made sure that it expanded in different countries and stay efficient in the global market. The strategies of the company helped the firm in encountering changing global marketing dynamics and environments. The strategies have also helped the firm ins knowing the market factors in different regions to make sure that the company effectively enters the different market.

Analyzing, interpret, and discussing what relationships exist between a foreign investor and a host country government and why are foreign investors important

From the viewpoint of a macroeconomic factor, investment is a significant element which is needed in the economic development of an organization (Rupert & Smith, 2016).  It can be said that Foreign investment within a country plays every important role in the overall economic development of country. There is a direct relationship between economic growth of the country and its Foreign Investments. It can be said that when the investments are high the economic growth is very high. The host government is also very inclined toward the rate of foreign investment which will be done as this will help the government in performance better economic development of the country based on such investment the countries develop policies for their further economic growth (Kollman, 2016). Hence it can be said that Foreign investment has a direct relationship between foreign investment and host government and they are very important for the economic development within an organization (Intriligator, 2017).

Internet and e-commerce are defined as digital enable a commercial transaction between and among the companies or organizations. The commercial transaction which is classified as electronic commerce is digitally enabled and this is known as e-commerce. There are many unique features of e commerce technology which are as follows:

1. With the help of the internet and e-commerce, a company market size pottential is equal or equivalent to worlds online population (Cohen, 2018).
2. A company can deliver their product with their richness and complexity without any compromise.
3. An organization can deliver the products to their specific targets like a person, groups or any region. Which means e-commerce and internet enable personalization and customization for the companies.
4. Internet and e-commerce allow enable ubiquity for an organization and makes them globally avail at all times.

Internet and e-commerce provide a global marketplace for MNCs which means that the marketplace of the multi natinal company is extended beyond the traditional boundaries and time are eliminated. A success of the MNCs with the help of e-commerce are totally dependent upon the e-readiness of its destination or host country. There is also a cross-border e-commerce and it can be classified into B2B, B2C and C2C forms which standard for Business to Business (B2B) eg. perfect commerce, Customer to Customer (C2C) e.g. Olx.com and Business to Customer (B2C) eg. 1800flowers.com respectively. The internet and e-commerce does not grant or guarantee the oversee success but it only can ease the process of going global (Cramer, 2017).

Conclusion

Concluding in the light of above context it can be said that global expansion and globalization of MNC have been befitted through internet and ecommerce. The impact of globalization has been positive of different MNC which have more freedom to conduct international trade. It is to be mentioned that there is need to understand that an increase in MNC companies will help in economic development of different countries and will facilitate the international market in economic terms.   

References

Cabello, F. C., Godfrey, H. P., Buschmann, A. H., & Dölz, H. J. (2016). Aquaculture as yet another environmental gateway to the development and globalisation of antimicrobial resistance. The Lancet Infectious Diseases, 16(7), e127-e133.

Cohen, R. (2018). Diasporas, the nation-state, and globalisation. In Global history and migrations (pp. 117-143). Routledge.

Coker, C. (2014). Globalisation and Insecurity in the Twenty-first Century: NATO and the Management of Risk. Routledge.

Cramer, J. (2017). Corporate Social Responsibility and Globalisation: an action plan for business. Routledge.

Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Competitiveness and globalisation. Cengage AU.

Intriligator, M. (2017). Globalisation of the World Economy: Potential Bene?ts and Costs and a Net Assessment. In Economics of Globalisation (pp. 85-94). Routledge.

Kollman, K. (2016). Same-sex unions: the globalisation of an idea. In The same-sex unions revolution in western democracies. Manchester University Press.

Krugman, P. (2017). Crises: The price of globalisation?. In Economics of Globalisation (pp. 31-50). Routledge.

Mowforth, M., & Munt, I. (2015). Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge.

Obstfeld, M. (2015). Trilemmas and trade-offs: living with financial globalisation.

Robertson, S. (2017). A class act: Changing teachers work, the state, and globalisation. Routledge.

Rupert, M., & Smith, H. (Eds.). (2016). Historical materialism and globalisation: Essays on continuity and change. Routledge.

Wright, S. (2016). Language policy and language planning: From nationalism to globalisation. Springer.

Wunderlich, J. U. (2016). Regionalism, globalisation and international order: Europe and Southeast Asia. Routledge.