The document discusses the advantages and disadvantages of global expansion for companies, highlighting that entering the international marketplace can lead to faster growth and fewer failures. It presents Porter’s Diamond Model as a framework for selecting international markets based on national competitive advantages and identifies key factors influencing companies to go global. Additionally, it outlines major challenges such as cost reduction and local responsiveness that firms face while operating internationally.

2. Advantages
&
Disadvantage
What is
Expanding
Globally
means ?
Mode of
Operations
2 Major
Problems
while Going
Global
How they
Choose
Country ?
Why
Companies
Go Global ?

3. Internationalization
 The international marketplace offers a
world of business opportunities for
companies seeking to sell or source
products worldwide.
 Not only can you tap into a world
marketplace of 7 billion people, but
according to business.gov, companies
that do international business grow
faster and fail less often than companies
that don't.
Internationalization is a cluster of International Strategies
required / adopted by an organization to market their
products/ services beyond the domestic boundaries.

4. Why Companies Go Global ?
Active
Reasons
Additional
Resources
Expanding
Market
Leveraging
Existing
Products, Skills
Realizing Cost
Economies
Reactive
Reasons
International
Demand
International
Competition
Trade Barriers
Policy
Regulations

5. How Companies Choose International Markets ?
Porter’s
DiamondModel
National Competitive Advantage

6. 4 Blocks of Porter’s Diamond Model
Factor Conditions :Describes the
situation in a country regarding
production factors, like skilled
labour, infrastructure, etc., which
are relevant for competition in
particular industries.
Home Demand
Conditions: Describes the state of
home demand for products and
services produced in a country.
Related and Supporting
Industries: The existence or non-
existence of internationally
competitive supplying industries
and supporting industries.
Firm Strategy, Structure, and
Rivalry: The conditions in a
country that determine how
companies are established,
organized and managed, as well
as the characteristics of domestic
competition industries.
Government and
Chance: Government can
influence development when
interfering market development;
unexpected events are described
with the factor Chance.

7. 2 Major Problems while Going Global
Pressure of COST
reduction Pressure of
Local
Responsiveness
International
Strategy

8. Modes of Operation

9. Advantages Disadvantages
 Realizing Economies of Scale
 Realizing Economies of Scope
 Expansion of Markets
 Access to resources overseas
 Realizing location economies
 Higher Risks (PESTEL)
 Difficulty in monitoring cultural
diversity
 Trade barriers
 Higher distribution costs

10. Kashyap Shah
Anubhuti Gupta
Harsh Jain
Divya Saxena
Prepared & Presented By,
Group- : Section-C