Global Marketing and Sales Assignment Sample
Introduction
This essay is all about conducting a thorough comparison with the internationalisation model that provides international business expansion. In this particular case, Tesco UK firm has been taken into consideration. In this case, the Uppsala model of internationalisation having a relationship with the contemporary expansion with international expansion.
There is a requirement to undertake another model that includes with Eclectic Paradigm model can be taken into a place for conducting the comparison. This essay work needs to outline key components regarding the Uppsala model and the Eclectic Paradigm model of internationalisation. There is a requirement to examine on relevancy based on the internationalisation nature.
Critical Evaluation with the comparison between two internationalisation theories
| Uppsala Model of Internationalisation | Eclectic Paradigm model of internationalisation |
| Concepts:
The Uppsala Internationalisation model delivers the best-known theory for the process for the international expansion of the business. This model can b assumed with lack of knowledge present in the foreign market that becomes detrimental for internationalisation. This can be suggested that organization like Tesco can establish in domestic markets and further increase resources and commitment on the target country with progressing form of stages that becomes sufficient to understand by acquiring knowledge on the conditions of foreign markets (Dow et al. 2018). |
Concepts:
The Eclectic Paradigm model of internationalisation delivers a suitable form of business approaches that delivers analysis on the firm making foreign direct investments. It lies as a holistic form of an economic model that helps in determining if a business can able to expand abroad with the presence of investment regarding foreign directs areas. This model suitable provides a suitable form of theory that makes a three-tiered form of framework for the organization to follow successfully (Guimon, 2016). This model tries to follow this framework at the time of deciding if the firm like Tesco can able to invest abroad. |
| Working mechanisms:
The Uppsala Internationalisation model has been a focus on four main concepts that includes with knowledge of the market, the commitment of market, decisions commitment and presence of current activities. The presence of market knowledge and commitment of the market on certain points needs to be assumed on the effects of decisions commitment and how entire activities can be conducted at a certain time. Based on these main four concepts, this model tries to predict organisation basic patterns to carry out investments in neighbouring countries rather than making investments in other countries. The organization needs to enter a new form of markets having larger psychic distances as well as investments in the market by developing a wider establishment chain (Stoian et al. 2016) |
Working mechanisms:
The Eclectic Paradigm model of internationalisation formulates as a holistic form of approaches that delivers wider examining of entire interactions and relationships arise from different components in business. This paradigm delivers a proper strategy for conducting suitable operations on the expansion in foreign markets through investments in foreign directs areas. The main goals are for determining the particular form of approaches that delivers a greater form of values with the presence of international choices from the production of services or goods. The entire business tries to seek on an option of cost-effective that still lies in maintaining quality by using through eclectic paradigm at the time of evaluation on the scenario that exhibits potential (Wang, 2017). |
| Strategy:
The major strategy for this model is to develop deals for entering new markets that become investing based on a single country than making any mess. This can become a leapfrogging type of tendency that allows entering on the distant market. This shows a firm that can able to learn practical as well as past experiences. In this particular case, competitive force, as well as factors for an override on the psychic distances, needs to be developed as explanatory factors in the organization’s internationalisation process. |
Strategy:
This model follows with a wider form of variety based on entry-mode strategies that can be chosen from and own in the organization. There are presences of other strategies that can be often used that includes licensing, exporting, strategic alliance and franchising. In this particular case mode of internationalisation lies with ownership, location and internalisation providing a successful form of engaging on the foreign direct investments. These factors deliver a major advantage by using various types of entry modes strategies. |
| Advantage of this model
This Uppsala model of internationalisation deals with the indirect form of exporting based on products that assist in the external form of export-based on merchants or agents. The presence of low methods cost-entry assists in using capital that makes the quickest process for entering the new markets. The proper form of establishing subsidiaries on foreign sales helps in increasing of sales, creates on market awareness and potential form of the consumer base that makes awareness on products that helps in identifying taste of consumers as well as cultural factors, which change based on the new market. The presence of foreign manufacturing on unit cost labour and production cost can be reduced (Coviello et al. 2017). |
Advantage of this model
In this case, the advantage can be drawn from three major that includes ownership, location and internalization. The ownership delivers the advantage with possession on certain rare and valuable resources that an organization delivers as a competitive advantage as compared to foreign rivals. The location delivers advantage based on liability from the foreign markets. The host counties can able to delivers offers based on location at the time of undertaking on foreign direct investments. The internalization delivers advantage by providing an attractive form of performing on the activity of value-chain. The main reasons for outsourcing on activities lie in a better way of acquiring knowledge on the local market or focusing on other activities delivered from the value chain (Wagner, 2020). |
Figure 1: Uppsala Internationalisation model
(Source: Coviello et al. 2017)
Providing two real-life examples that illustrate the internationalisation theory
Two real-life examples of the organizations that deliver business based o the global market place with the demonstration of research work at the time of applying theories based on practice areas. The two real-life examples can be followed as:
- The organization of Apple delivers a successful form of global brands from all time by competing as a global market place by following the Uppsala internationalisation model. When it comes with the services or products for the organization, the organization has effectively opted as a strategy based on one size that can fit for all.
- The Apple Company delivers better process based on internationalisation with the series with incremental decisions. The wider form of establishment chain can successfully begin on hoc form of products exports with selling agents (Vahlne and Johanson, 2017).
- This can be established on subsidiaries sales that make production. The organization tries to follow a suitable form of the model at the time of designing on emphasis as well as dynamic with experimental knowledge by the present as foreign markets.
- The Apple organization can be conducted with suitable operations based on fairly market as well as gradually based on the penetrated form of distant market. The Apple firm can able to entry on the new market based on sales subsidiaries and export agents.
- Another real-life example arises with the organization of Starbucks that delivers a powerful form of global branding. In this case, Eclectic Paradigm forms of internationalisation model. The firm used this model by avoiding transactions based on open-market that delivers cost with completing on same actions. The organization delivers a suitable form of benefits by ownership, location and internalization.
- The ownership delivers benefits in the firm with branding, trademark, copyright or patent rights. The ownership delivers an intangible area that delivers a competitive advantage for Starbucks. The presence of location benefits delivers specific functions on particular nations.
- The organization Starbucks assess the comparative advantage of performing specific functions. These forms of considerations can be successfully applied in Starbucks by applying on the cost of resources and availability.
- The location advantage can be successfully referred to as created or natural resources with immobile on a partnership that makes foreign investors based on locations by utilization as full benefits (Alikhanov and Khudiyev, 2020).
- The internalization benefits deliver the signal in Starbucks by producing a particular form of products. There have been cost-effective areas by Starbucks at the time of operating in various market locations based on work-in-house. This real-life examples, make outsourcing form of the route at the time of making financial sense by contracting Starbucks at the time of meeting quality as well as needs on standards at low cost.
These above two real-life examples deliver a suitable form of internationalisation model for the expansion of the business. The presence of the appropriate model in the Eclectic Paradigm and Uppsala internationalisation model delivers a unique form of business expansion in the international market.
Conclusion
It has been concluded that the Uppsala model delivers a relevant form of a business model that becomes a vital environment. This model delivers relevant areas on the process organization by setting with the presence of suitable internationalization process. This model delivers better assumption with lack of knowledge based on a foreign market that becomes detrimental.
References
Alikhanov, A. and Khudiyev, N., 2020. TESTING OF FDI AND NON-OIL FDI INFLOWS IN AZERBAIJAN USING DUNNING’S ECLECTIC MODEL. Economic and Social Development: Book of Proceedings, 3, pp.620-626.
Coviello, N., Kano, L. and Liesch, P.W., 2017. Adapting the Uppsala model to a modern world: Macro-context and microfoundations. Journal of International Business Studies, 48(9), pp.1151-1164.
Dow, D., Liesch, P. and Welch, L., 2018. Inertia and managerial intentionality: Extending the Uppsala model. Management International Review, 58(3), pp.465-493.
Guimon, J., 2016. Universities as multinational enterprises? The multinational university analyzed through the eclectic paradigm. Multinational Business Review.
Stoian, M.C., Rialp, A., Rialp, J. and Jarvis, R., 2016. Internationalisation of Central and Eastern European small firms. Journal of Small Business and Enterprise Development.
Vahlne, J.E. and Johanson, J., 2017. From internationalization to evolution: The Uppsala model at 40 years. Journal of International Business Studies, 48(9), pp.1087-1102.
Wagner, C., 2020. Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review. Management Review Quarterly, 70(1), pp.51-96.
Wang, Y., 2017, December. Traditional Factors of Eclectic Paradigm, Doing Business and Chinese ODI. In 2017 2nd International Seminar on Education Innovation and Economic Management (SEIEM 2017). Atlantis Press.
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