Question

Assuming Malibu’s Board of Directors wants to increase international sales, what do you recommend? What international strategy would be best for Malibu to follow?

Answer 1

For Malibu, international strategy means focusing on exporting products and services to foreign markets or, conversely, importing goods and resources from other countries for domestic use. Companies that use such a strategy are often completely dependent on their home country, which allows them to avoid the need to invest in employees and factories abroad. Companies that implement these strategies often include small local producers who export significant resources to large companies in neighboring countries. However, this model is not without its main business challenges, such as the legal establishment of local sales offices and administrations in major international cities, global logistics management, including export, export and production of products. And ensure compliance with foreign production and trade regulations.

Despite the challenges involved, international strategy is probably the most common, as it requires the least cost. Companies looking to expand internationally can try a combination approach to see which one works best for them in terms of logistics and profitability. For example, a company can start using an international strategy - to export its products abroad as a way to test in international markets and evaluate how well its products are selling. The company may then need to refine its strategy and create an internal platform through which it can produce and sell products more efficiently.