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Foreign economic activity. Strategies for foreign economic activity (the most important)

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89. Strategies for foreign economic activity

Strategy - a general program of action that defines the priorities of the problems and the resources needed to achieve the main goal. The strategy forms the main goals and the main ways to achieve them, thereby setting a single direction of action.

The process of choosing a strategy takes place in several stages. This is the analysis:

▪ all aspects of the company’s foreign economic activity.

▪ market for the future (analysis of supply and demand).

▪ the company's capabilities.

▪ fiscal policy.

▪ the impact of economic trends on the economy of the enterprise, as well as the development of a long-term strategy for the company’s foreign economic activity.

Consequently, the development of a strategy for the foreign economic activity of a company is a process of studying the world market, determining the global and local goals of foreign economic activity. It is also the choice of preferred segments, bringing the company's export potential in line with the set goals, identifying preferred partners in export-import operations in order to prevent inefficient international market transactions.

When choosing a foreign economic strategy, firms can use the following alternative strategies.

▪ Innovation strategy. Western markets are showing trends toward market saturation, so creating and attracting consumers is becoming increasingly important as one of the most important factors for success in competition. New products must be different from existing products in the market, either in appearance or in function. However, their creation requires large expenses and is associated with risk.

▪ Diversification strategy. Diversification refers to the inclusion in the production program of products that do not have a direct connection with the previous field of activity of the enterprise. It makes sense to use the accumulated experience and connections.

▪ Internationalization strategy - provides for systematic and systematic processing of foreign markets. Reasons for using this strategy: tougher competition, stagnation of the domestic market, the desire for a fuller utilization of production capacities, the need to spread risk and the presence of financial advantages.

▪ Globalization strategy - is to determine the general characteristics of markets and target groups that do not depend on the characteristics of individual countries. The main strategy for selecting and processing markets in this case is the standardization of products. The company strives to optimize the overall results, deliberately allowing deviations from the optimal performance in individual markets.

▪ Cooperation strategy. The dynamics of the development of national and international markets often prompts enterprises to seek mutually beneficial cooperation with other firms in order to better exploit the potential of the market and strengthen the existing market position. Cooperation may consist in the creation of purchasing, research, advertising partnerships, marketing syndicates, joint trademarks (brands).

Strategic alliances can be formed by manufacturing companies with their suppliers and distributors, and even, with certain marketing interests, with competitors.

▪ Technology Strategies. The speed of technological development in many industries (microelectronics, biochemistry, genetic engineering) has led to the fact that technology is becoming an increasingly important competitive factor. For many businesses, getting the technology strategy right is essential. This is understood as a systematic and conscious direction of the technical potential of the enterprise to the needs of the market.

Author: Bobkova O.V.

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