This document discusses the stages of internationalization that companies go through as they expand globally. It begins by outlining several drivers of corporate internationalization including cost drivers, government drivers, competitive drivers, and market drivers. It then describes 5 stages of internationalization that companies typically progress through: 1) Domestic Company, 2) International Company, 3) Multinational Company, 4) Global Company, and 5) Transnational Company. For each stage, it provides details on the company's strategy, view of world markets, orientation, key assets, and the role of country units. It concludes by summarizing the differences between each stage in a chart.

1. INTERNATIONALIZATION
PROCESS
BY- VIJYATA

2. Corporate Internationalization and Globalization Drivers
2
Corporate
Internationalization and
Globalization Drivers
Globalization Facilitator:
Information Technologies
COST DRIVERS
- Economies of Scale
- Steep Experience Curves
- Low-Cost Production
- Favorable Logistics
- New Product Development Costs
GOVERNMENT DRIVERS
- Trade and Investment Barriers
Reduced by UN Agencies and by
Individual Governments
COMPETITIVE DRIVERS
- Rival Domestic and International
Firms
- Imported Goods
MARKET DRIVERS
- Common Customer Needs
- Global Channels
- Marketing Transfers and Global
Branding
- Lead Countries

3. STEPS IN INTERNATIONALISATION /GLOBALISATION
3
1
3
5
4
2
DOMESTIC
COMPANY
MULTINATIONAL
COMPANY
TRANSNATIONAL
COMPANY
INTERNATIONAL
COMPANY
GLOBAL
COMPANY

4. 1. Domestic Company
“if it is not happening in the home country, it is not happening”
◈Limits its operations, mission and vision to the national political boundaries.
◈Focuses its view on the domestic market opportunities, domestic suppliers,
domestic financial companies, domestic customers etc
◈Never thinks of growing globally
◈If it grows, beyond its present capacity, the company selects the
diversification strategy of entering into new domestic markets, new products,
technology
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5. 2. International Company
◈The focus of these companies is domestic but extends the wings to the foreign
countries.
◈Go for international trade either forced by domestic or foreign forces
◈Most of the companies follow this strategy due to limited resources and also to
learn from the foreign markets gradually before becoming a global company
without much risk.
◈Extends the domestic country marketing mix and business model and practices to
foreign countries
◈Believe that the practices adopted in domestic business the people and products
of domestic business are superior to those of other countries.
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6. 3. Multinational Company
◈Multinational company is also referred to as multi-domestic.
◈Multi-domestic company formulates different strategies for different
markets
◈The orientation shifts from ethnocentric to polycentric.
◈Under polycentric orientation the offices/branches/subsidiaries of a
multinational company work like domestic company in each country where
they operate with distinct policies and strategies suitable to the country
concerned.
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7. 4. Global Company
◈Global company either produces in home country or in a single country
and focuses on marketing these products globally, or produces the
products globally and focuses on marketing these products domestically.
Example - Harley designs and produces super heavy weight motorcycles in the USA and
markets in the global market.
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8. 5. Transnational Company
◈Transnational company produces, markets, invests and operates across
the world.
◈ It is an integrated global enterprise that links global resources with
global markets at profit.
◈A transnational company is geocentric in its orientation.
◈This company thinks globally and acts locally.
◈This company allows adaptation to add value to its global offer
◈The assets of a transnational company are distributed throughout the
world, independent and specialised
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9. Chart : Different scenerio of internationalisation of companies
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Stage of
company
1. Domestic
Company
2.International
Company
3.Multinational
Company
4.Global Company 5.Transnational
Company
Strategy Domestic International Multi Domestic Global Global
Model N.A Co-oriented
Federation
Decentralise
Federation
Centralised Hub Integrated Network
View of
World
Markets
Home country
Market
Extension of
Resources
National and
resources
Global Markets Global Markets
Orientation Ethnocentric Ethnocentric Polycentric Mixed Geocentric
Key Assets Located in
home country
Core Centralised and
other dispersed
Decentralised
and self
sufficient
All in home country
except marketing or
sourcing
Dispersed,
independent and
specialized
Role of
country
units
Single country Adapting and
leveraging
competencies
Exploiting local
opportunities
Marketing or
sourcing
Contribution to
company
worldwide
Knowledge Home centred Created at centre
and transferred
Retained within
operating units
Marketing
developed jointly
and shared
All functions
developed jointly
and shared

10. Write to me at vijyata.rwc@gmail.com or
comment in the comment box
THANK YOU !!!
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