Sample Essay

1.1 Context

Yadong Luo (1999) considers that “International Expansion is a dynamic, evolutionary process shaped by an MNE’s international experience, organizational capabilities, strategic objectives, and environmental dynamics” (Luo 1999, p. 6). He further states that “International Expansion is an instrument that allows business firms to transfer capital, technology, and organizational skills from one country to another” (Luo 1999, p. 11). Remaining in the same context, Mehran Nejati and Mostafa Nejati (2009) states that “International expansion is seen as a cumulative process of relationship creation, maintenance, development and ending” (Nejati and Nejati 2009, p. 53). Furthermore, Alan M. Rugman (2009) reflects that “International expansion is a consequence of the growth of a successful firm” (Rugman 2009, p. 724).

It is evident from the above definition that a firm’s decision to engage in International Expansion is one that is indicative of its exceptional growth and established stability. In International Expansion the firm chooses to expand into a non-domestic region where it can take advantage of favorable market conditions in order to increase productivity along with an enhancement in its stability and growth.

Susan Segal-Horn and David Faulkner (1999) point out that “International expansion is far more complex that expansion within an organization’s domestic market” (Segal-Horn and Faulkner 1999, p. 2). It is therefore imperative to realize the significance of studying International Expansion in a context that does not rely on domestic expansion. A research in International Expansion shall require a unique focus that will have to engage the target market as a secondary market and where the expanding firm will generally have to establish itself from the ground up. In this regard, the use of a case study can play a significant role in isolating elements of domestic expansion from those of international expansion since an international expansion will require an in-depth analysis of the target market into which the expansion is to be carried out.

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