Review of Company Examples - Free Paper Sample

Introduction

Expanding the company's operations to the international level has become one of the best tactics for big firms, through trending their brands in different countries and making themselves to be recognized as among the fundamental strategies of winning on global competition. According to Hout et al. (1982), accentuated that before a firm decides on entering the international market, contemplations should be on whether the businesses industry has the required features that can support a universal competitor. Similarly, Thomé & Medeiros (2016) emphasized during the last thirty years; the international business environment has experienced significant changes, including the rise of newly industrialized nations in Asia and Europe. The three companies that were successful in competing globally based on Hout et al. (1982) are Caterpillar, L.M. Ericsson, and Honda.

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Caterpillar

Caterpillar is a manufacturing company in the United States and it specialized in the construction industry. The company provides various equipment and machines that are used worldwide. Furthermore, the firm has inventories, financing, engineering, as well as repair services that are universal and managed well locally (Hout et al., 1982). Also, Caterpillar has been successful through enhancing its network of sales in several nations and maintaining a competitive advantage from the cost and effectiveness of their products (Hout et al., 1982).

Ericsson

Another company that demonstrated global competition is L.M, Ericsson, which is located in Europe. According to Hout et al. (1982), the Ericsson company has invested a lot in electronic technology and thus successfully established and exploited the technological industry. Similarly, the company succeeded by developing products and services that could fit a diverse telephone system, thus meeting its customers' needs at a realistic price (Hout et al., 1982). Furthermore, the Ericsson company strategized its work by developing software packages that were compatible with several telephone systems, thus earning a competitive advantage.

Honda

Honda is a Japanese motor company that managed to establish its brand in the market. According to Hout et al. (1982), Honda used the marketing strategy to make its brand global by persuading middle-class Americans to have fun while riding a motorbike. Through the innovation technique used in Honda marketing, they were able to increase their growth rate, thus expanding to other countries around the globe with the same marketing strategy.

Company Engagement in International Business

International business plays a significant role for companies to expand. Although several reasons make firms engage in international business the primary aim is usually expanding their sales and growth of the company. Furthermore, the company's diversification is also important because international business firms will be able to hire international employees. Thomé & Medeiros (2016) argued that for companies to increase their sales, they always depend on customer’s interest in their products and services and their willingness and capacity to purchase. Also, companies engage in international business to get resources that are not readily available in their homes. For instance, technology and foreign capital might help reduce the cost of production for a company. Hout et al. (1982) also suggested that for a company to engage in international business, they need to consider the world as one market and implement international strategies to thrive in todays world.

Companies Successful in Implementing International Strategies

Coca-Cola Company is an international firm that deals with beverages. The company used a global strategy by focusing on the availability, affordability, and acceptability of their products in all countries (Gertner & Rifkin, 2018). This strategy allowed the company to get a considerable market share in the economy and thus becoming part of every person’s meal. According to Gertner & Rifkin (2018), stated that Coca-Cola has been experiencing inspection because of the increased condemnation of their products, causing a health problem of obesity.

Another company that has attained international business is Apple. Apple has invested a lot in the technology industry by developing telecommunication devices and portable computing gadgets (Choi, 2018). Choi (2018) has also stated that Apple has developed factories in various countries and expanded its international retail shops in several locations worldwide to meet customer demands. Similarly, the company has undergone examination in its operations numerous times, but it has upheld a level of success in its brand.

Ikea has also utilized a global strategy and has emerged a successful international business company. The company has invested in the retail industry, and it has managed to be a frontrunner in the maintainable worldwide sourcing practices (Jiang et al., 2018). Furthermore, the company has developed various retail stores around the world, including Europe and Asia, with the first products being leather because it is their most traded product internationally (Jiang et al., 2018).

Conclusion

The three companies, Apple, Coca-Cola, and IKEA, have used the same strategies as those in Hout, Porter, and Rudden (1982) article. For instance, based on the article, the fundamental elements used to make the companies achieve the global market is through viewing the world as a single market, thus concentrating their business strategies on long-term plans to arrange tactics locally for international markets (Hout et al., 1982). Furthermore, the three companies have also utilized price for their goods, production cost, and innovation.

References

Choi, W. K. (2018). The Sisyphus’s rock of prosperity and disparity in the global economy: Giovanni Arrighi and apple Inc’s tax avoidance strategies from Obama to Trump. New Political Science, 40(2), 285-308. https://doi.org/10.1080/07393148.2018.1449572

Gertner, D., & Rifkin, L. (2018). CocaCola and the fight against the global obesity epidemic. Thunderbird International Business Review, 60(2), 161-173.
https://doi.org/10.1002/tie.21888

Hout, T., Porter, M. & Rudden, E. (1982, September). How global companies win out. Harvard Business Review. https://www.google.com/amp/s/hbr.org/amp/1982/09/how-global-companies-win-out

Jiang, Y., Jia, F., & Gong, Y. (2018). IKEA: global sourcing and the sustainable leather initiative. The International Food and Agribusiness Management Review., 21(5), 627–640.
https://doi.org/10.22434/IFAMR2017.0109

Thomé, K. M., & Medeiros, J. J. (2016). Drivers of successful international business strategy: Insights from the evolution of a trading company. International Journal of Emerging Markets, 11(1), 89-110.
https://doi.org/10.1108/IJoEM-09-2012-0120.