Business method - internal strategies

Globalization may affect many aspects, which include economy, environment, culture and politics. Economic globalization is the international integration of goods, technology, labour, information, capital or other process of making this happen. It encourage many companies expand their business to other countries, because it can increase their market share and decrease some material cost or labour cost, at the result, the company can gains more profit. Company should consider the internal strategies and external strategies to become global business successfully. Below I will discuss about the internal strategies. In internal strategies, Company can choose exporting, direct investment and e-commerce to develop their business to overseas.

Exporting is selling the products to another country. Some business will choose this method because it is low cost and they do not need to set up an operation in that country. E-bay is an example about exporting, people can sell their good to overseas countries, such as a seller in UK can sell his or her products to Hong Kong. The seller does not set up a business in Hong Kong, but he or she can sell the products to Hong Kong. https://www.youtube.com/watch?v=YyW4pvYYjV4

Direct investment is established an operation in another country and manage by themselves, this is a high risk and high cost method. A German luxury car brand BMW has established a manufacture in India and China. Although the labor cost in those countries are low, company should invests on land cost, material cost, quality control and equipment, and it totally cost BMW about £18,624,000. https://www.youtube.com/watch?v=6l1S1LXC9aE

E-commerce is selling or buying goods through the internet, it has same advantage as exporting, which is cheaper way to build up the business in other countries without operate a business in overseas. Amazon and E-bay are the good example for e-commerce, it is convenience to the buyer to buy good from other country and seller can sell products to another country. https://www.youtube.com/watch?v=AhgtoQIfuQ4

In conclusion, these three methods are the internal strategies for company, it has advantage and disadvantage of the business, therefore, company should choose the based on their situation to find the suitable one. About the external strategies, I will talk about it in the next blog.