Arcelik's Business Expansion

International expansion enables companies to potentially enhance their competitiveness by means of with(predicate) securing access to new markets, technologies, brand names, resourcefulnesss and strategic assets abroad by utilizing a variety of strategies, including product and technological diversification cross(prenominal) 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 carry domestic economy, potentially missing expose on opportunities that ar available only to firms that are prepared to expand worldwidely opportunities such(prenominal) as becoming integrated in global pass judgment chains or attracting global customers. A combining of charge and pull factors is responsible for international expansion and these have out be examined below. This report is to propose the strategy for future carrying into exploit upon evaluation of the driv ing factors and available options. Asset-Exploitation and Asset-Seeking There are amass modes to engage in international business activities with exporting with the terminal risk to direct foreign investment on the former(a) polish off of the spectrum. According to the conceptual framework by Dunning (1981, 1988), a fellowship chooses among three modes of internationalization (exporting, licensing and FDI) on the basis of three distinct but interrelated advantages (ownership, location and internationalization). While in harmony to the Uppsala model, internationalization is incremental, sequential and attainment base, occurring in stages, based on cumulative market knowledge and commitment (Erdilek 2008), Arcelik has the mental might to operate in volatile and turbulent environments, giving a competitive advantage to adapt and survive. At the same time, Mathews (2006) spearheaded most other perspective of asset seeking and developed the resource linkage, levera ge, and learning framework and argues that f! irms internationalize to acquire strategic...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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