FOR ESSAYS GURU ONLY 51A

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The first requirement needed to expand a business or idea into an international business is a strategy. There are several different types of strategies and not all products or regions are limited to just one. A firm’s strategy can affect how the product is moved and handled through the logistics supply channel, or how it reflects in a marketing aspect, the strategy can also affect the bottom line of a product’s cost or return (Hill, 2017). How is this done? First, a firm needs to create a value for their product. This can be achieved by simply making your product unique. Whether it be a special paint color or a slight change in the cost of your product over the competitor’s product, a unique product will catch more attention. This is the case when firms export custom homemade goods and market them internationally (International Strategy), they essentially offer the world something it has not seen or something that it doesn’t have (Hill, 2017). Second, reducing costs or creating location economies, economies of scale or simple learning or experience effects can make a custom product decrease in production cost over time. This will once more give the firm a leading edge against a potential competitor. Since customers typically seek products priced relatively close to their actual value, lower costs and overhead will help that firm beat out any competition.  How does this affect a business, first depending on what a firm is trying to accomplish, it will have to determine what products it chooses to market or sell across borders. Figuring out what costs will be involved will also help a firm figure out what strategy they should choose. For firms seeking to produce custom goods, a localization strategy will be most effective. For a firm seeking to reap profits from economies of scale, industries, and markets a global standardization strategy will be most effective. Finally, for firms seeking to market their own products across the world, firms and businesses should consider what makes their products unique and what they can do to make that product special in a different region, in a different culture (Hill, 2017).  References  Hill, C. W. L. & Hult, G. T. M. (2017). International Business; Competing in the Global Marketplace (11th ed.). New York, NY: McGraw-Hill Education.