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Different business, different factors?
1 day ago
Hi all,
Having had a thought about the factors that need to be considered when expanding internationally, I believe that the importance and priority change depending on the industry, restrictions and the country it is being marketed within.
I have selected two industries, two different regions and two different sizes for the purpose of this post.
Company A: A Italian baker who is intending to sell their produce in France.
Company B: Large Japanese pharmaceutical company intending to sell its product in Saudi Arabia.

For Company A, having considerable knowledge of the country risk/demand uncertainty is less of a concern as there are a reduced number of legal issues as both countries are within the EU and would abide by the same or similar regulations. This however may change if alcohol was being exported due to taxation on products and legal restrictions.
For Company B, sociocultural distance between home country and host county, market size and growth and international experience are all significant factors. If an organisation is exporting their products long distances, temperature controlled environments and safe transportation will be highly important. Additionally, legal barriers regarding the use of pharmaceutical products, what it contains, and how it is used is serious. If there are any issues surrounding the safety of the product there could be severe ramifications.
I am aware I have picked two extreme examples to highlight a point. I would be interested if anyone has real-life examples of how two organisations will view the factors outlined in Figure 9.1 differently.

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