Article analysis Essay Example | Topics and Well Written Essays - 2000 words

Article analysis - Essay Example The internationalization process helps in development and applicability of the internationalization process theory to the several marketing operations (Conconi, Sapir, and Zanardi, 2013). For example, the gradual internationalization process inspires the organization to enter markets, which have an impact of the economic, social and cultural similarities with the growing domestic and international markets. The study will deal with the various dimensional aspects of internationalization and its effect on the business activities (Birnik and Bowman, 2007). The author of the study will also highlight the various facets of strategies that help in the development of emerging markets. Finally, the study will conclude the impact of emerging markets on the developed and developing economy for the success of the organization and the economy itself. Emerging Markets of Developed & Developing Economy The gradual internationalization process requires exploration of the market with several opportu nities and more or less with equitable similarities. This process also helps in addressing the risks associated with innovative capability and also the perceived risks associated with foreign market entry. There are usually various dimensions to the market entry which increases with the foreign entry modes, and the dimensions include resource commitment and order of market entry. Gradual internationalization requires less resource commitment such as exporting right from the beginning of the market entry and then transfer into other entry modes. Resource commitment requires emphasis on the perceived risk associated with each of the market entry modes (Cai, 2000). The second dimension is the order of market entry modes, which lays emphasis on an organization trying to enter into domestic markets and then expanding into international markets. This order of entry is also known as psychic distance on the internationalization theory. Emerging markets have been regarded as the attractive s ource and target market for further operation and expansion of the base activities. These emerging markets have been regarded as the base of manufacturing activities due to their easy availability, high quality and cheap labor and easy-to-assemble raw materials. The multinational corporation has expanded by opening several units worldwide. It has been observed that Internet organizations expand on a global scale for reduction in deviation methods and errors in their distribution system (Gustafson, 2011). The Internet organization has expanded a larger scale for wider operations and also increases in their outcome for various purposes. Internationalization Process Theory The concept of internationalization process was formulated by Johanson and Wiedersheim-Paul and was modified gradually by other authors. The internationalization process differs marginally between policy formulations and status quo. This process also helps in conceptualizing the international marketing theory in a di fferent way, which is often termed as an entrepreneurial fact (Shirani, 2009). The major objectives of the internationalization process is access to low cost production, proximity to suppliers, availability of technical and non-technical skills, reducing competition, energy, etc. (Kim, 2003). The internationalization process also helps in understanding the entry mode strategies and developing a market entry mode for the company accordingly. Internationaliza