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1. Cost Drivers Of Internationalisation Texas

The famous author and cheerleader for globalization, Thomas Friedman, in his book The World is Flat identified some key drivers of globalization. He called these factors the flatteners to denote the premise of the book that these factors were responsible for the flattening of the world.

Cost Drivers Of Internationalisation Texas

All internationalization is based on drivers that influence the process how the company capabilities can be developed. It is of utmost importance to identify and understand these drivers as the success of the company depends on that knowledge. These drivers might include:

The entrepreneur – all internationalization related development activities of a strongly entrepreneur driven company fail or succeed due to the entrepreneurial teams skills, competences, and experience.

Customer relationships – is your internationalization based on a few big and important customers? It is a blessing and a curse or an opportunity and a risk at the same time.

Innovation – is your internationalization based on a unique innovation? That is also a two-edged sword as although the innovation may open up the opportunity to serve new customers, there is also a risk that no one is willing to accept the risk of buying an unproven innovation.

Costs – may sound a good reason to internationalize part of your operations to a lower cost environment. However, if cost reduction is the only reason to internationalize, one should be careful not to forget to invest in growth, too.

Outsiders – do you think that your industry, customers, partners or others pull you to international markets? Internationalization should follow a deliberate choice made by you. And so should also the activities you plan to initiate.