A firm which plans to go international has to make a series of strategic decisions. They are broadly the following:
International business decision
The first decision a company has to make, of course, is whether to take up international business or not. This decision is based on a serious consideration of a number of important factors, such as the present and future overseas opportunities, present and future domestic market opportunities, the resources of the company (particularly skill, experience, production and marketing capabilities and finance), company objectives, etc.
Market selection decision
Once it has been decided to go international the next important step is the selection of the most appropriate market.
For this purpose, a thorough analysis of the potentials of the various overseas markets and their respective marketing
environments is essential. Company resources and objectives may not permit a company to do business in all the
overseas markets. Further, some markets are not potentially good, and it may be suicidal to waste company resources
in such markets. A proper selection of the overseas market(s), therefore, is very important. (iii) Entry and Operating
Decisions: Once the market selection decision has been made, the next important task is to determine the appropriate
mode of entering the foreign market.
Marketing mix decision
The foreign market is characterised by a number of uncontrollable variables. The marketing mix consists of internal
factors which are controllable. The success of international marketing, therefore, depends to a large extent on the
appropriateness of the marketing mix. The elements of the marketing mix - product, promotion, price and physical
distribution - should be suitably designed so that they may be adapted to the characteristics of the overseas market.
More details are given in some of the following chapters.
International organisation decision
A company which wants to do direct exporting has also to decide about its organisational structure, so that the exporting
function may be properly performed. This decision should necessarily be based on a careful consideration of such
factors as the expected volume of export business, the nature of the overseas market, the nature of the product, the
size and resources of the company, and the length of its export experience. The nature of the organisation structure
of the company will depend on a number of factors like its international orientation, nature of business, size of
business, future plans etc.
