An international ICT company needs to answer the following questions on corporate level in the context of determining its globalization strategy: What businesses to select for global market expansion? How diversified/related should the business portfolio be during globalization?
Earlier research has developed the dimensions of corporate strategy (Ansoff, 1987, pp 109–110) and strategic alternatives for global companies (Luostarinen, 2001, p. 33). Based on this research, the following business portfolio strategies for globalizing internationals may be proposed: (1) Global Focus Strategy; global geographical expansion in a single or dominant business area with current product technology and market segment, (2) Global-Related Diversification Strategy; (2a) Global geographical expansion in a related market segment but with a new product technology and (2b) Global geographical expansion in a related product technology area but offering this to new market segment(s), (3) Global Unrelated Diversification Strategy; Global geographical expansion to unrelated market segments and utilizing unrelated product technology.
Geographical market expansion outside the home continent changes the way ICT companies plan their marketing strategies at the business unit level. In addition to home continent, they must also take into consideration the requirements of the global markets.Most of the sales come from outside the home continent at the global stage, and therefore cannot be ignored. Another important aspect to consider is the phase of global market development. The strategic thrust in the international market entry and penetration stages is to adapt the offering to the local country demands, while the focus shifts in the global alignment phase to seeking global integration benefits, while satisfying minimum local market requirements.
Earlier research has developed the dimensions of corporate strategy (Ansoff, 1987, pp 109–110) and strategic alternatives for global companies (Luostarinen, 2001, p. 33). Based on this research, the following business portfolio strategies for globalizing internationals may be proposed: (1) Global Focus Strategy; global geographical expansion in a single or dominant business area with current product technology and market segment, (2) Global-Related Diversification Strategy; (2a) Global geographical expansion in a related market segment but with a new product technology and (2b) Global geographical expansion in a related product technology area but offering this to new market segment(s), (3) Global Unrelated Diversification Strategy; Global geographical expansion to unrelated market segments and utilizing unrelated product technology.
Geographical market expansion outside the home continent changes the way ICT companies plan their marketing strategies at the business unit level. In addition to home continent, they must also take into consideration the requirements of the global markets.Most of the sales come from outside the home continent at the global stage, and therefore cannot be ignored. Another important aspect to consider is the phase of global market development. The strategic thrust in the international market entry and penetration stages is to adapt the offering to the local country demands, while the focus shifts in the global alignment phase to seeking global integration benefits, while satisfying minimum local market requirements.
