Websites Review
Crafting strategies for competing internationally is a crucial step for organizations aiming at global expansion. Choosing the right strategy will determine the success of the company in foreign markets. There are three main types of international strategies for competing outside the domestic market: “multidomestic, global, and transnational” (Arenas & Ayuso, 2016, p. 219). This paper aims to review three company websites and determine which of these three strategies they describe.
Website One
The first website belongs to M&A Transnational. The company’s business is helping small and mid-cap companies expand internationally through mergers and acquisitions. The website provides information about the pitfalls of cross-border transactions and advertises the company’s services. The essential message of the website is that it may be difficult for small and mid-cap companies to make cross-border deals because of a lack of knowledge of different cultures and the specifics of negotiating with foreigners.
The material presented on the website reviews what a company should do to make a successful merger or acquisition. Identifying potential acquisition targets, negotiating deals, and arranging the acquisition financing are the necessary steps that a company should undertake to expand through mergers or acquisitions. I agree with what the site presents because acquisitions are a difficult process, and it requires much preparation to ensure that the deal will be successful and profitable. Apart from that, the website helps identify the international strategy used by M&A Transnational. This network operates in five countries, and, in each location, its members act independently and respond to local needs. Therefore, it may be concluded that M&A Transnational uses a multidomestic strategy for competing internationally. I benefited from reviewing this site because it enriched my knowledge of the challenging process of acquisitions.
Website Two
The second website belongs to Velocity Global. The company provides a wide range of services helping other firms expand globally. The website is available in four languages, including English, Spanish, French, and German. In the Blog section, the company gives recommendations to businesses about how to expand globally. The essential message of the website is that there is no one-size-fits-all approach to global expansion.
The material presented on the website has led me to conclude that every company has to decide on the most appropriate way of expansion. Yet, Velocity Global emphasizes the need to respond to the needs of local markets. Therefore, it is possible to assume that the company advocates for a transnational strategy for competing internationally. According to Arenas and Ayuso (2016), the transnational strategy is an alternative to both global and multidomestic strategies because it balances the headquarters’ control with the need for local responsiveness. Velocity Global not only recommends this strategy to its customers but also executes it itself by providing customized solutions and responding to local needs.
Examining this website was beneficial to me because it gave me a more in-depth insight into what a company should consider before going global. For example, I found out that, in order to craft a strategy for international markets, a company should consider talent acquisition, overseas payroll, and entity setup and maintenance, among others. Additionally, particular attention should be given to legal regulations in a foreign country regarding such issues as immigration and employment.
Website Three
The third website is the website of IBT Online. This company helps various organizations expand their business to foreign markets on the internet. The essential message of the website is that to operate successfully in foreign markets, companies should establish their online presence in the target countries. In order to do this, companies should localize their websites, adapt content to the local needs, and make the purchase option easy to use for the residents of the host country.
The company has a blog in which it publishes materials helping its customers understand the specifics of the online world of a particular country. From the material of the website, I found out that translating a website into the language of the target foreign market is not enough to ensure an effective online presence. Adapting the content to a different culture and adjusting SEO optimization strategy are crucial steps for competing internationally. I agree with this point because an online presence is an essential element of modern companies’ marketing strategies, so companies should make their customers’ online experience convenient and easy. I also think that this approach is essential for companies pursuing a multidomestic strategy for global expansion because it focuses on local responsiveness.
Summary
This experience was valuable for me because it provided me with some insights into international strategies. All three companies under review are engaged in the business of helping other companies expand globally. The first website enriched my knowledge about mergers and acquisitions. This is a difficult way of expansion, which may result in cultural and structural conflicts within the company, but it ensures rapid large-scale market entry and may be appropriate for companies pursuing a transnational strategy. The second website improved my understanding of issues that needed to be addressed when expanding internationally and convinced me of the advantages of the transnational strategy. The third website showed that, for a multidomestic strategy, adapting the company’s online presence to local needs was essential.
Reference
Arenas, D., & Ayuso, S. (2016). Unpacking transnational corporate responsibility: Coordination mechanisms and orientations. Business Ethics: A European Review, 25(3), 217–237. Web.