The document outlines the stages of internationalization for companies, ranging from domestic to transnational. It describes various company types: domestic companies focus solely on their national market, international companies extend operations abroad while still prioritizing their home country, multinational companies adapt strategies for different markets, global companies prioritize global marketing, and transnational companies integrate operations globally while allowing for local adaptations. Each type has distinct characteristics, strategies, and orientations impacting how they operate in the global marketplace.

1. Topic 3
INTERNATIONALIZATION
PROCESS
BY- VIJYATA

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

3. 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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4. 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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5. 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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6. 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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7. 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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8. 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