When a company is presented with the opportunity to expand globally, choosing the right strategy is crucial. An international strategy, characterized by minimal changes to products and pricing when entering new markets, offers numerous benefits to companies in the early stages of international expansion.

Exploring the Benefits of an International Strategy in Global Expansion
1. Cost Savings and Efficiency
One of the most significant benefits of an international strategy is its potential for cost savings. By maintaining the same product and business model, companies can minimize costs related to developing new products, marketing, and production. Maintaining a consistent brand also optimizes operational processes and management, leading to improved global operational efficiency.

2. Easy Brand Recognition
An international strategy enables companies to establish and strengthen brand recognition globally. Customers will easily recognize your brand regardless of their location, enhancing trust and brand loyalty. This is particularly important in the early stages of expansion when companies need to build credibility in new markets.

3. Quick Access to New Markets
Implementing an international strategy allows companies to penetrate new markets more quickly. By avoiding significant adjustments to products or pricing strategies, companies can swiftly expand their reach and generate new revenue. This also helps companies minimize risk in the early stages of expansion.

4. Leveraging Existing Competitive Advantages
An international strategy allows companies to leverage existing competitive advantages, such as high-quality products, strong brand recognition, or effective marketing efforts. Utilizing these elements with minimal modifications helps companies maintain their position and maximize their potential in new markets.

5. Developing Global Management Skills
When companies adopt an international strategy, leaders gain opportunities to develop global management skills, from understanding different cultures to coordinating operations across multiple markets. This not only helps companies expand but also enhances their ability to handle global challenges in the future.

An international strategy offers a clear and effective path for companies on a trajectory of global growth. By preserving the core elements of their products and brands, companies can swiftly and efficiently penetrate new markets while building strong brand recognition. To achieve sustainable success during this expansion phase, companies need to be mindful of cultural differences and market demands while still relying on their inherent strengths and competitive advantages to further their global journey.

​What is International Strategy?
International strategy is a long-term plan that multinational companies adopt to expand their business operations into global markets. This strategy helps companies shape how they approach and exploit opportunities in foreign markets, depending on various factors such as resources, industry, and characteristics of the target market.

Global Pressure and Local Pressure
Multinational companies face two main types of pressure:
Global Pressure:
-Cost reduction: Companies need to optimize production and distribution costs to compete effectively.
-Importance of global customers: Customer needs can be consistent across multiple markets, requiring product uniformity.
-Global competition: Companies must compete with major brands worldwide.
-Common consumer needs: Global consumer trends can affect products and services.
-Technology and investment intensity: Technological advancements can create opportunities or challenges for businesses.
Local Pressure:
-Differences in consumer needs: Consumer needs can vary from country to country.
-Distribution channel changes: Distribution channels may differ between markets.
-Government requirements: Regulations and laws in each country can affect business operations.
-Local market structure: Market characteristics and needs may require strategy adjustments.
Approaches to International Strategy
Many people may think that companies simply choose between global integration or local adaptation. However, international strategies are often more of a hybrid. For example, a wine-producing company might maintain production in its home country while still exporting its products to other markets without significant adjustments, as consumer tastes are similar.

Characteristics of International Strategy
-Focus on headquarters: Key strategic decisions are made at headquarters, with a dedicated department managing international operations.
-Exporting standard products: The company primarily exports products without tailoring them to local preferences, resulting in minimal changes in production and marketing processes.

Therefore, international strategy is often referred to as "export strategy," as it focuses on exporting products from the domestic market to foreign markets without significant changes.

International Strategy Compared to Global Expansion Strategies
According to Bartlett and Ghoshal, the differences in global integration and responsiveness to local markets allow for the classification of global expansion strategies into four main types. Here is a comparison between international strategy and other types of global expansion strategies:

1. Global Strategy
-Features: Global companies optimize operations in foreign markets, focusing on leveraging each country’s competitive advantages.
-Decision-making: Centralized at headquarters.
-Example: Apple offers the same product line across all markets with a strong brand, manufacturing in multiple countries.
2. Multi-domestic Strategy
-Features: Companies adapt products and services to each local market through independent subsidiaries.
-Decision-making: Subsidiaries have a high degree of autonomy and can make decisions for the local market.
-Example: Procter & Gamble adapts its products to fit the preferences and needs of each market.
3. Transnational Strategy
-Features: Combines elements of global and multi-domestic strategies. Decisions are made jointly by headquarters and subsidiaries, with adjustments made to suit the local market.
-Example: L’Oréal offers strong brands from multiple countries, adapting products to local needs but maintaining global brand consistency.
4. International Strategy
-Features: Focuses on exporting products from the home country without significant adaptation for local markets. Subsidiaries act primarily as distributors for exported products.
-Decision-making: Centralized at headquarters, with limited emphasis on local responsiveness.
-Revenue: Domestic market revenue is prioritized, while foreign market revenue is considered supplementary.
Key Differences
-Subsidiary Independence: Multi-domestic and transnational strategies allow subsidiaries a high degree of autonomy to adapt products for local markets, while international companies primarily act as distributors of products from headquarters.
-Importance of Foreign Markets: In international strategy, foreign market revenue is not as important as domestic market revenue. Conversely, in other strategies, foreign markets are considered equivalent to domestic markets.

Benefits and Growth Strategy
Many companies choose an international strategy initially due to its simplicity and low cost. However, as international operations grow, shifting to one of the more complex strategies often becomes key to long-term success. For example, Orange has evolved from a domestically focused company to a global conglomerate with independent subsidiaries in multiple countries.

Therefore, choosing the right global expansion strategy is crucial and should be based on a company’s specific goals, resources, and target markets.

Benefits of International Strategy
Expanding globally is a significant decision, but when implemented correctly, an international strategy offers many benefits for businesses. Here are some notable benefits:

1. Location-Based Competitive Advantage
Expanding into international markets allows businesses to seek new customers, overcome competitors, and improve product quality. Entering foreign markets allows companies to optimize their competitive position globally.
2. Economies of Scale in Development and Production
Companies can leverage economies of scale by developing and producing goods on a larger scale. This not only reduces production costs but also optimizes supply and distribution processes.
3. Higher Return on Investment (ROI)
Many companies seek opportunities for higher returns on investment from international markets compared to domestic markets. However, ROI will depend on analyzing production, development, and specific localization costs for each market.
4. Global Brand Recognition
By maintaining a consistent brand across all markets, businesses can enhance global brand recognition. This helps the company’s name and logo become more familiar and trustworthy to consumers.
5. Global Customer Satisfaction
Customers often seek out products they are familiar with. Offering the same product or service globally helps create satisfaction and loyalty from customers, even when they move to other countries.

An international strategy not only helps businesses grow but also opens up many new opportunities. By leveraging these benefits, companies can strengthen their position in the global market and build a strong and sustainable brand.

5 Examples of Leading International Strategies
Below are five prominent examples of companies that have successfully implemented international strategies, showcasing how they leverage internal resources and achieve growth in the global market.

1. Starbucks
Starting as a small shop in Seattle in 1971, Starbucks now has 32,000 coffee shops in 80 countries. Starbucks’ success comes from providing consistent products and standardized store designs globally. This not only creates a consistent brand experience but also makes their coffee easily recognizable, with their iconic mermaid logo.

2. Rolex
Rolex has built a solid reputation in the high-end watch industry, with all products made in Switzerland, prominently displaying the “Swiss made” label. All core operations, from research and development to design and sales, are centralized at its headquarters in Geneva, demonstrating its commitment to quality and brand.

3. Porsche
Porsche, a German sports car manufacturer, stands out by delivering over 300,000 cars globally in 2021. Every car is assembled in Germany, with all research, development, and after-sales activities managed from domestic locations. This helps maintain high quality standards and a strong brand image.

4. Hermès
Founded in Paris in the 19th century, Hermès primarily produces high-end products in France. With over 300 stores worldwide, the company generates over 90% of its revenue from international markets. Hermès products, from handbags to perfumes, have consistent designs across all stores, contributing to its global brand recognition.

5. Harley-Davidson
Harley-Davidson is known for its motorcycle designs that remain unchanged across countries, providing satisfaction to customers globally. The company maintains its product development and manufacturing processes in the United States, ensuring quality and brand consistency. The global recognition of Harley motorcycles is a testament to the success of their international strategy.

These companies have proven that a well-defined international strategy can lead to sustainable growth and success in the global market by maintaining consistent quality, brand, and customer experience.

An International Strategy is One of the Most Direct Means to Go Global
When companies aim to expand into international markets, an international strategy is a popular choice. This strategy is often adopted when a company’s operations do not require complex coordination in developing products and services for different markets. As their products can succeed without significant adjustments for each locality, this approach is ideal for the initial phase of global expansion.

Exporting standardized products from the headquarters makes the market penetration process simpler and faster. After achieving initial success with an international strategy, a company can transition to other global expansion strategies. This not only helps reduce production costs but also allows the development of products that are more aligned with local needs.

One of the biggest benefits of an international strategy is the ability to create economies of scale in production. Moreover, recognition and appreciation from customers around the world are also crucial factors that help companies like Rolex and Porsche maintain this strategy for decades. This success comes not only from product quality but also from how they build a strong and consistent brand globally.

In conclusion, an international strategy is not only an effective starting point for going global but also a foundation for sustainable growth in the future.

Conclusion
International strategy plays a vital role in helping companies expand globally, especially in the early stages of this process. By exporting standardized products from their headquarters without significant adjustments for each local market, businesses can quickly penetrate new markets and leverage their competitive advantage.

Maintaining high production standards and a global brand identity not only generates recognition but also creates sustainable profitability. Companies like Rolex, Porsche, and Starbucks, by adopting an international strategy, have successfully built their brands and increased customer satisfaction globally.

Ultimately, an effective international strategy not only creates expansion opportunities but also serves as a foundation for transitioning to other global expansion strategies, helping businesses grow sustainably and in the long term. Researching and adjusting the strategy based on global market fluctuations will be key to future success.