What Are the Four International Business Stages? Explain Marketing in the Correct Order

The first stage is exportation, in which your product is marketed to your target market. Some companies sell their products directly, while others use a third party. Direct exporting has been shared among luxury brands and businesses selling internationally for many years. This method usually produces a good return on investment. However, if you're new to exporting, you might want to start with indirect exporting.

FDI is the second stage of internationalization. Companies are more likely to export as they become more productive. This process is also linked to higher levels of innovation, such as learning-by-exporting. FDI also promotes economic and sectoral technological progress. FDI can also help your company reduce the costs of entering foreign markets by sourcing technology abroad. If your product is exported, you will benefit from the success of FDI.

At this stage, new distribution channels and sales promotions are established. Production has been reallocated. Foreign direct investments are becoming increasingly important. The next step entails relocating production and establishing cooperative relationships between domestic and foreign firms. This procedure is also known as business cloning. Meanwhile, the Uppsala model is the most common type of internationalization. It entails delegating marketing and sales functions and establishing cooperative relationships with a foreign company.

When your company decides to enter an international market, you must plan how to do so. There are several strategies for entering a foreign market, each with its own set of costs and levels of control. Choose one based on your product's value and shipping options. In addition, it would help to consider market competition and consumer demands when deciding whether to buy or produce. So, which strategy is best for you?

The following stage is known as sequential internationalization. This is the gradual transition of your company from domestic to internationalization. Many entities travel down this path. This stage is widespread in the case of new businesses. These companies are frequently described as "born global," and they struggle to identify the key national markets. They often concentrate on increasing global sales. To enter a new market, these companies must overcome several obstacles.

Your company converts raw materials into finished goods during the exporter stage. Most of the time, this is a component of your main product that will require assembly. Microchips, for example, are manufactured in Japan and shipped to the United States to be assembled by Apple or Dell. However, exporters may choose to export products if they specialize in a particular field or require assistance finishing them.

You must first establish a solid domestic market before entering an international market. This stage will assist you in fine-tuning and testing your products. If you are new to exporting, you should focus on developing a robust domestic market before expanding into international markets. This stage is critical if you intend to export goods but do not want to jeopardize your core business. Once you've accomplished this, you'll be able to expand your company into other countries.

Your company chooses between local responsiveness and global integration in a global strategy. Localization of operations and products may occur in the latter case. Some brands prefer to localize their operations, while others prefer to standardize them. A successful transnational strategy can be an excellent way to test a product's global appeal without heavily investing in staff or infrastructure in the target markets. It's a simple strategy that usually works well in the beginning.