Do you think Starbucks would have become one of the world’s largest fast-food chains if it wasn’t present globally? The international expansion consists of many details and challenges. On this page, we explain the importance of international expansion and the strategies companies like Starbucks, Netflix, and Amazon use. Let’s start!
🔝 Top 10 International Expansion Strategy Examples
- International Management in Business Globalisation
- Emaar Marketing Strategy for International Expansion
- Under Armour Company's Market Expansion Strategy
- Choco’a Company's Growth and Expansion Strategies
- Starbucks’ Expansion in Central and Eastern Europe
- Wal-Mart’s Global Success
- Zara: Fast Fashion Case Analysis
- Walmart Company's Global Leadership Strategies
- Starbucks Corporation's Global Expansion
- Starbucks Trading Strategy Analysis
🗺️ International Expansion Strategy Explained
An international expansion strategy is a set of measures businesses use to enter foreign markets. Below you will find a detailed explanation of what global expansion is and what are the best examples.
Global Expansion Strategy Definition
Global (international) expansion is usually divided into several strategic plans with different objectives. Together, these multi-level plans cover all business aspects and actions, reducing the risk of extra expenses and overall failure.
Developing a global expansion strategy is vital for sustainable growth and efficient risk management. Each case is unique, so each company uses different methods and sets different goals. But all of them fall closer to one or another strategy framework.
Why Expand Overseas?
Each company has unique motives for going global, but we’ve made a list of general aspects. Take a look at the main benefits of international expansion:
- More profit. It is the goal of any business – entering new markets means selling more products and services.
- Less competition. Some countries are not as saturated with goods and services, so it’s easier for businesses with limited budgets to compete there.
- Better innovation markets. Any business learns from the market it enters. Local employees can have completely different knowledge and sets of skills.
- Risk distribution. You probably heard that you shouldn’t put all your eggs in one basket. With a global presence, a product fails in some countries and is highly profitable in others.
- Expense reduction. Outsourcing helps to reduce costs connected with the price of materials, manufacturing, and human resources.
✏️ 4 International Expansion Strategy Tips
Although each company has a different expansion strategy, there are several must-do actions to make the strategy work:
- Researching the same business area in the target country. Examples of other brands help to implement new business models in the future. Finding a company that has recently entered the same country is even better.
- Evaluating the costs of entering the market. At this point, a company should get an approximate figure to understand the expenses and create optimistic and pessimistic scenarios.
- Finding issues that might slow a company down or stop it. The possible problems might include local laws, talent sourcing, competition, etc.
- Developing a marketing strategy. It is possible to use the current one as a basis and adapt it to another country. However, it is essential to examine local traditions, culture, consumer behavior, and future competitors.
🌎 Best Global Expansion Strategies
These are the most popular types of global expansion strategies:
|Multi-domestic strategy||If a company uses this strategy, it adapts its products to local markets. For example, it might sell different goods in different countries. A brand can also adjust its logo or name to match local preferences.|
|Global strategy||This is the most complicated and expensive approach. Using a global method, a company doesn’t change its goods or services much. It makes universal products and promotes its brand name worldwide.|
|Transnational strategy||This one is somewhere in the middle between multi-domestic and global systems. It involves segmenting markets by areas or regions instead of focusing on each country.|
☕ International Expansion Strategy Examples
Starbucks Global Expansion Strategy
The strategy of Starbucks is closer to the multi-domestic approach. Local responsiveness and global integration are the two most important factors for this business. While its standard offerings are the same, some positions on the menu are unique in each country. The company also uses franchising a lot, which makes it highly decentralized.
Netflix’s Global Expansion Strategy
Netflix went from a DVD rental to the most popular streaming service in the world. It used a transnational approach and expanded to Canada, Latin America & the Caribbean, and Europe. The prices and availability of content vary from country to country, and each user has a unique recommendation system.
Amazon’s Global Expansion Strategy
Why is Amazon the most popular online marketplace in the world? The e-commerce platform adapts to each market but uses a transnational strategy. It offers convenient payment methods, an extensive choice of goods from local sellers, valid return policies, and customer support.
For more examples of international expansion strategies, check these sources:
- Apple Case Study 📱 Simple Ideas About Design Thinking at Apple, HR Management, & Supply Chain
- PepsiCo Ethical Issues: 🧃Awesome PepsiCo Case Study Ideas for Students
- Adidas Case Study: 👟 Marketing Plan, Social Media Analysis, Adidas Vs. Nike Comparison
📝 International Expansion Strategy Research Paper Examples
- Market Entry Strategies for MNCs in the Automobile Industry of ChinaThe study researches factors that have influenced the choice of market entry modes for Multinational corporations in China's automobile industry.
- SonAir: A Company’s Business ExpansionThe company selected for the study is SonAir, which is a business unit of SonAngol Oil Company. The transnational operation strategy adopted by the company to gain entry.
- Wal-Mart: Analysis of Company’s Success in the International MarketThis paper seeks to answer questions: How Wal-Mart continued its extraordinary growth. Did Asia and Europe offer Wal-Mart real opportunities for international market dominance?
- PepsiCo: Company AnalysisThe firm’s success is evident from the fact that it has managed to become the global leader within the industry having achieved a number of milestones over the years.
- Ernest & Young: Invest in Saudi ArabiaThe paper discusses the determinants and motives for Ernest & Young to challenge and invest in Saudi Arabia market.
- Wal-Mart Retail Enterprise: History and GrowthWal-Mart is the largest retail enterprise in the world. Wal-Mart functions across the world and is known for its cheap products.
- Tuvalu Wines Expands: Case StudyThe paper analyzes the options at the disposal of the directors in their bid to finalize the global acquisition of the French company.
- The Prospects of General Electric Company in Saudi ArabiaThis paper discusses the prospects of General Electric Company and analyses the growth and expansion strategies adopted in the Middle East with a special focus on Saudi Arabia.
- Internal and External Influences on the CompanyInternal elements are more critical to its growth and sustainability than external factors that have gained momentum.
- Managing In a Global EnvironmentThe objective of this report is to examine and make a critical analysis of the different human resources aspects connected with the expansion of an organization into international markets.
- Tengelmann: International BusinessTengelmann is a privately owned food retailer based in Muelheim, West Germany. The company was founded in 1867 by Wilhelm Schmitz.
- Lufthansa Going Global. Company AnalysisLufthansa is one of the largest airlines in Europe based on the total number of passengers carried. The airline is also the flag carrier of Germany.
- Lufthansa: Going Global and Managing ComplexityLufthansa is one of the largest commercial airlines in the world. To expand internationally Lufthansa takes steps that range from integrating the efforts of its business segments
- Krispy Kreme Hospitality Company's Strategic AnalysisThe KK Company has been struggling hard to survive in the marketplace; and by so doing, they gained the capabilities to capture an excellent market share.
- Starbucks: Multi-Channel GrowthStarbucks Company first officially opened its doors for business in 1971. At this Seattle's Pike, the company had a vision of supplying coffee to surrounding restaurants and bars.
- Egycel Telecommunication Entering the Cuban MarketConsidering the intensity of competition characterizing Egypt’s telecommunication industry, Egycel Telecommunication should formulate effective expansion strategies.
- International HR Management Case StudyThe international human resource management is a key to the international expansion of a company and involves preparing staff members to work discharge their duties in various operations
- International Human Resource: Company Global ExpansionThis report outlines the analysis and evaluation of an Australian Company that is seeking global expansion to Indonesia. The HR-functions are reviewed with respect to the culture.
- Mobil Indonesia Company AnalysisMobil’s inclination toward the achievement of personal and political objectives became a factor that severely limited its chances to take fair advantage of the opportunities.
- IKEA’s Path of InternationalizationThe current report focuses on exploring IKEA's approach toward internationalization and international expansion as a component of its strategy.
- Apple Inc Company AnalysisGlobal expansion remains a sensitive area for most companies. As demonstrated by Apple Inc., international development comes with both challenges and benefits.
- Walmart Company's Expansion Strategy and Cultural IssuesWalmart operated general merchandise and Bodega food stores, including Suburbia and Superama supermarkets. The two apparel stores are used in more than 145 cities within Mexico.
- Business Stakeholders: Case Study of Ben’s Big Bins ExpansionThe paper discusses Ben's Big Bins expansion case gives an insight into how careful even a small company should be in relationships with its stakeholders.
- A Business Case: Expansion of Murray’s Cheese CompanyExpansion is a part of a firm’s development. Murray’s Cheese wants to move to bigger premises in Mexico to bring this cheese brand and new production technology.