CAOT 31 Lecture Notes - Lecture 7: Cost Leadership, Marketing Strategy, Horizontal Integration
12 Oct 2020
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Chapter 13 strategies for growth: growth options. Initially start-ups grow by increasing sales of their product or service in the target market(s) they have identified, called market penetration; important to investors since they want to maximize their roi. The low-risk option is to seek out segments in the countries that are similar to the ones you already sold to: internationalization. Market expansion involves for most businesses internationalization; kuhlmeier and knight associate four dimensions with internationalization: (1) relationship quality, (2) cooperation, (3) trust, and (4) commitment. These stage models highlight the process that a sme might go through in developing its overseas markets, each stage requiring a greater degree of resource commitment and risk: If your competitive advantage is based on resources located in your home country; low cost, low risk way of finding out about a market; risk: difficult to recover bad debts from overseas customers; currency fluctuations.
