International Operations
Companies decide to internationalize operations when the local market becomes saturated as a method to continue to grow and increase market share. Internationalization is the process by which companies shift operations from their home country into foreign markets. This process can be accomplished through a number of methods depending on the size, resources and strategy of the company.
Methods of International Operation
Companies will normally expand into international operations by exporting to overseas markets through independent channels or by licensing foreign manufacturers to produce products for overseas markets (Dicken 2003, p. 207). The next step is for a company to establish sales outlets in overseas markets by either buying a local company or setting up a new facility (Dicken 2003, p. 207). The last stage in internationalization is when a company establishes production facilities overseas by either buying another firm or setting up facilities (Dicken 2003, p. 207).
III. International Strategy for Polymer Technology Systems (PTS)
PTS is a medical diagnostic tools company founded in 1992 in Indianapolis, IN, USA (Cardiochek, 2008). Its main product is cardiochek, a handheld point of care diagnostic device to test blood cholesterol (CardioChek, 2008). The product was launched outside of the U.S. In 2002 and is currently available in 100 countries and six different languages (CardioChek, 2008).
PTS began its international operations by exporting its devices to 70 different countries (Wall, 2007). This is a good entry strategy for PTS because it was a newer company that did not have the experience or capital to open facilities or purchase local companies for distribution. PTS made a good move by hiring Hans Fredman as its international sales director in January 2003 (Wall, 2007). Fredman, based in London, is well connected with medical-device makers and worldwide distributors (Wall, 2007). Finding local...
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46). Likewise, Gillispie suggests that an incremental approach can be used to "test the waters" for even very small companies seeking to project an internationalized presence. In this regard, Gillespie recommends that companies, "Craft a scaleable master design that represents the major aspects of your business worldwide and anticipates the degree of localization that will be required in each market. The degree of localization can have a real impact
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