International Business Essay Example | Topics and Well Written Essays - 1500 words - 2

International Business - Essay Example After achieving huge success level in domestic market leading companies wish to do business practices across the domestic border in order to maximize profit, its market share, core competency and goodwill. These are all tangible and intangible assets of a company. The company chooses internationalization process in order to take the advantages of advanced technology, potential marketplace and favorable economical factors of international market. The internationalization process and the reason of adopting the process can be identified by several business models. Demand and supply led drivers will help to identify the advantages of customer and supplier relationship management for the international market orientation and the difference of these two drivers will help to identify the impacts on business practices for a company. Followed by this the Eclectic theory of internationalization will help to analyze the different categorized advantages that will help international business pract ices. Next the Uppsala model will help to find the business activities of a company in a foreign market. Last but not the least the product life cycle tool will help the company to develop their product internationally considering different aspects of product life cycle. The objective of the study is to find the reason for internationalization of a company and evaluation of several international business tools. Demand and Supply Led Drivers In order to adopting international business process companies need to understand about the demand led drivers and supply led drivers. The basic purpose to reinforce this demand and supply drivers is the gaining knowledge of companies about the demand chain management and supply chain management in international market. The difference of demand led driver and the supply led driver in specific international market is based on importance. The supply led drivers is the degree that focus on consumers and this driver gives importance on efficiency of s ervice. Here the company management consider about cost-led and supreme level of customer service. The risk of this supply-led driver is that the target customers may be aggregated. Therefore the link between customer and supplier relationship management may be hampered. Demand led drivers hold the broader vision of relationship management. This driver integrates both of the customer and supplier relationship management. The need of demand led driver is to allocate required resources for thy international operation (Porter, 2011, p.115). It is kind of a push strategy which influences both the customer and suppliers. Supply led driver is more of a pull business aspect. It may affect the target customers different brand loyalty and orientation. Eclectic Theory Eclectic theory of internationalization is the economics theory based on the theory of transaction costs. The idea behind the application of eclectic theory in internationalization process is to understand the economic approache s in international competitive business market. The fundamental forms of international market such as Licensing, FDI, and Export can be distinguished by this theory (Cantwell and Narula, 2012, p.71). Before entering in international market the three categories of advantages in internationalization process of this theory such as ownership advantages, internationalization advantages and location advantages need to be identified by the company. If the company has ownership advantages such as knowledge about the international target market, employees’ international language skill, appropriate products, information about import permission and huge contacts can help the company to do the Licensing in