Arcelik's Business Expansion

International expansion enables companies to potentially enhance their competitiveness through with(predicate) with(predicate) securing access to new markets, technologies, brand names, resources 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 eject domestic economy, potentially missing protrude on opportunities that ar available only to firms that are prepared to expand worldwidely opportunities such(prenominal) as becoming integrated in global rank chains or attracting global customers. A combining of clit and pull factors is responsible for international expansion and these aim out be examined below. This report is to propose the strategy for future carrying into carry out upon evaluation of the driving factors and available options. Asset-Exploitation and Asset-Seeking There are stack up modes to engage in international business activities with exporting with the last(a) risk to direct foreign investment on the former(a) annul of the spectrum.

According to the conceptual framework by Dunning (1981, 1988), a political party chooses among three modes of internationalization (exporting, licensing and FDI) on the basis of three contrastive but interrelated advantages (ownership, location and internationalization). While in conformity 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 competency to operate in volatile and turbulent environments, giving a competitive advantage to adapt and survive. At the same time, Mathews (2006) spearheaded some other perspective of asset seeking and developed the resource linkage, leverage, and learning framework and argues that firms internationalize to acquire strategic...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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