An introduction to internationalizing - Essay Example

An Introduction to Internationalization An Introduction to Internationalization Internationalization refers to an organization’s initiative to expand its operations to the global market. Internationalization has far reaching benefits for the organization, including a larger market area, utilization of area economies, enhancement of key expertise learnt through dealing with different markets, and development and transfer of skills between the corporation’s subsidiaries and headquarters (Travis 2007, p.36). However, in order to successfully internationalize, the firm needs to undertake market research, analyze the global markets and recognize the suitable target markets before venturing.

Having successfully established itself in the UAE, the firm must consider a target market whose needs and preferences match those of members of the UAE. In the event that the suitable market has a number of diverse groups with different preferences, the firm will need to customize its product to suit these tastes. Moreover, we need to diversify our business portfolio by engaging in business activities that go beyond the company’s current portfolio, for instance, manufacturing of less refined pottery to suit the low income earners in the target market.

This will result in the development of higher market pools, therefore, enhancing the firm’s profit margins.The firm should seek areas with a high population of its target market. The global market consists of various environments such as urban and rural environments. These environments each have a distinct bureaucratic process and labor law; it is paramount to avoid markets that have excessive bureaucracy and inflexible and outdated labor laws. Dubai for instance, would be a good market option as it is strategically close to Abu Dhabi, our head office.

This market is well served by modern infrastructure; hence transportation of both raw materials and finished products will be easy. Moreover, the market has high market opportunities internally and internationally as it is served by over 170 airlines and 86 shipping lines (Rehman, A. 2007, p.57). This will lead to the firm’s expansion into the international market through exportation opportunities. Moreover, this nation has suitable labor laws and bureaucratic process; it neither has corporate and income taxes nor foreign exchange controls.

In addition to this, Dubai is one of the most economically developed nations, and its population mostly consists of people leading a Cosmopolitan lifestyle, which is our most suitable target market; one that appreciates fine art. The nation is also known to hold top international exhibitions, through this, the firm can showcase its products growing familiarity. However, this market can prove a bit complex compared to our state, for instance, it has state of the telecommunications. In order to deal with this issue, our staff will need to undergo training to familiarize themselves with these systems.

In addition to this, punctuality is not considered a virtue in Dubai, this may prove problematic in meetings, but with understanding of this cultural difference, the company is set to excel. In conclusion, the firm should embrace a new organizational culture to meet the demands of this new market, human resource restructuring is paramount in order to maximize the potential of all our current staff. The global business environment is an ever changing phenomenon; the company should, therefore, position itself as an organization that represents innovation in its product’s designs, and adherence to the ever changing labor and human rights standards.

ReferencesRehman, A. 2007, Dubai & Co.: Global Strategies for Doing Business in the Gulf States. McGraw-Hill, NY.Travis, T. 2007, Doing Business Anywhere: The Essential Guide to Going Global, Hoboken, John Wiley & Sons.  Joshi, D & Rakesh, M. 2009, International Business, Oxford University Press, Oxford.Donald A. 2003, Business without Borders: A Strategic Guide to Global Marketing, DePalma, Globa Vista Press. Ash, L. 2003, The Web Testing Companion: The Insiders Guide to Efficient and Effective Tests, Wiley, Ivey Publishing.