Internationalization



Internationalization

Introduction

Internationalization is the key driver for the small business to flourish in the dynamic world of increasing competition. The internationalization is the process of planning and executing the products strategies which can make the product adaptable in the specific cultures of the countries. The internationalizing process opens the door for the potential customers, suppliers and partners from the different locations of the world. Small businesses have got the ground to compete on an international scale. However, this internationalization has also brought some challenges for the small businesses along with its prominent benefits. This essay aims at identifying the challenges faced by the small business when they go for internationalizing their businesses.

Discussion

Internationalization is the process of advancing the involvement of small enterprises in the international markets. Businesses face many challenges at the time of internationalizing especially the small businesses as the internationalization needs the businesses to posses the ability of understanding the international culture of the country where it is supposed to internationalize. The in depth analysis of different cultures, beliefs, values and behaviors of other countries help small businesses to flourish in the international locality successfully.

The main challenge which internationalization demands with the small business is to have an ongoing concern for innovation and high quality that may help the businesses to successfully blend in the other countries. The other challenge which they face is that they have to reduce their prices to compete in the global market and if they do not lower down price then nobody will be interested in buying from them. This affects their profitability negatively. The other challenge which small businesses have to face is to involve in the process of profound change as because the internationalization requires the businesses to take risks and to learn the culture of other countries. The major challenge faced by the small businesses all over the world is the competitive environment. The others may also include the governmental regulations and economic conditions of the new country where the business plans to operate. Some of the major challenges faced by the small businesses are as following:

Market Knowledge: this is the major barrier to the small businesses as they lack in the information of overseas market or international market. They do not have the in depth knowledge about the cultures, preferences and buying behavior of the people prior to the entry in the international market.

Business Competition: small businesses face the lack of experience in international business practices as they know about the business orientation of the domestic markets so when they expand and enter in the international market they face competitive pressures from the already existing players present in the market. In such cases, businesses have to cut down their prices up to a great extent to penetrate in the competitive market.

Government Policies: the other major challenge is the government policies and regulations of the country where the business desires to operate. Businesses have to consider as well as follow the governmental policies of that particular locality in order ...