GONZLEZ RAMOS JESS FERNANDO

4NV2

INTERNATIONALIZATION

The global economy is currently one of the greatest moments of dynamism and change. The unification of markets, product standardization , homogenization of tastes and needs of consumers in the developed world , new communication channels , distribution and sale , and the quantity and quality of existing products and services , mark a trend that leads to the internationalization of companies . The internationalization of the firm can be defined as the set of activities that the company develops outside markets which are their natural geographical environment. Reasons for Internationalization Keep growing in its sector, because the domestic market is too small Take advantage of unused manufacturing capacity Export because the external market is scarcity of natural market for these products Diversifying the risk of operating in a single market Gain prestige in the domestic market Offset a crisis in the domestic market Access to a larger market (high volume) and be able to compete in an industry where other firms gain economies of scale worldwide Gaining competitiveness to fight more efficient competitors For the tough competition in the domestic market or in response to an attack by an international competitor that threatens their position Because the international market is more profitable

Advantages of Internationalization: Production Use the full capacity Economies of scale Competitive Advantage In the factors of production (labor, raw materials or energy) Optimal rationalization of production

Merchandising Access to a wider market

GONZLEZ RAMOS JESS FERNANDO

4NV2

Stability in sales Customer proximity Image Enhancement (internal and external) Removing cultural barriers Suppression of protectionist barriers Elimination of the cost of international transport Reaction to competition

Finance Risk Diversification Compensation results Access to international funding International tax planning

Human resources learning Experiences applicable to the domestic market

Typically, the transformation of a national company is done internationally through a gradual process , in which the degree of commitment of the company grows as their knowledge of the foreign market and the variables inherent in the process increases. Consequently , the international expansion of a business is a process through which , at first , it installed outside their borders those activities chain closest value to the customer end - to - exports , from there , begin to progress in their internationalization assuming greater levels of commitment - such as direct investments. Internationalization of Mexican Companies Today's global economy demands a great competitiveness in business activities . Therefore, the Mexican government has mandated ProMxico support and promote the internationalization of Mexican companies , including strengthening them in international supply chains. The internationalization of Mexican companies is the process by which a company operates overseas , consolidating the presence of its products or services, and to establish an investment operations to ensure ongoing participation in one or more foreign markets .

GONZLEZ RAMOS JESS FERNANDO

4NV2

ProMxico favoring internationalization means that Mexican businesses have a commercial or production arm. To do this , it works by Internationalization Project Area , in conjunction with its headquarters offices in the Republic and abroad , to support companies with potential to move into processes : Distribution or commercial representation abroad Presence exhibition or distribution centers , Creating a partnership with a foreign company, Acquiring a firm abroad , Participation in international tenders Franchise Operation , Construction and operation of production facilities in other states

The internationalization of Mexican companies is not only generating more income , but also a tool for strengthening Mexico as a country brand .

STEPS FOR COMPANY INTERNATIONALIZATION

1 -. Strategic review of the company. 2 -. Diagnostic potential for internationalization. 3 - Confirmation of internationalization. 4 - Overarching Focus: - Concentration / Diversification - Selection of countries / areas - First channel selection 5 - Plan of seeking information and support 6 - Focus focused or centered: - Segmentation - Choice of target market or country - Choice of channel - Strategic review

GONZLEZ RAMOS JESS FERNANDO

4NV2

7 - Operational Plan: - Market Access Plan - Marketing mix by segment Product Price Distribution Customer Service 8 - Plan investments and cash 9 -. Action Plan 10 - Cooperation: Networks, Consortia, Partnerships

EXAMPLES

Coca Cola Nokia Apple Motorola Ford Renault Citron McDonalds Burger King Monsanto Lloyd Bank Bayer Nike Pepsi