Internationalization stages
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This document outlines the four stages of internationalization for companies: 1) Domestic companies focus only on their home market. 2) International companies begin expanding abroad in an ethnocentric manner by extending their domestic strategies. 3) Multinational companies adopt a polycentric orientation by adapting their marketing to local overseas operations. 4) Global companies recognize similarities across markets allowing them to develop global strategies combining extension, adaptation, and creation to gain scale economies worldwide.
Internationalization stages
- 1. Internationalization Stages •Domestic Companies: Most international companies have their origin as domestic companies. These companies focus on domestic operations only. •International Company: These companies are ethnocentric and their business strategy is extension. •Multinational Company: In stage two above at some point companies realize that they must adapt their marketing mixes to overseas operations which can be termed as polycentric orientation. •Global/transnational Company: Recognizing that market around the world consists of some similarities and it is possible to develop global strategy based on these similarities to obtain scale economies. The strategy is a combination of extension, adaptation and creation.