global markets and business expansion Flashcards
push factors are
reasons why a business may want to grow outside of the domestic country
pull factors are
opportunities a business may see for expansion into a foreign market
saturated markets are
the point at which the market no longer generates new demand due to competition
offshoring is
moving various operations abroad
3 examples of pull factors
- wages may be cheaper
- economies of scale
- risk spreading
3 positives of offshoring
lower unit costs
access to more specialised suppliers and services
economies of scale
3 negatives of offshoring
training costs
poor customer service
public and employee relations suffer
outsourcing is
getting another business to do their work
positive of outsourcing
business can focus on core areas
negative of outsourcing
loss of brand recognition and customer service
extension strategy for a mature product
introduce product to a new international market
3 positives of introducing a mature product to an international market
- profitable returns
- potential economies of scale
- develop new/loyal customer base
4 negatives of introducing a mature product to an international market
- language barriers
- increased exporting costs
- expense of marketing campaigns
- need to adapt to new market
