Developing a business strategy to support the international expansion of a European business firm : facts, trends and considerations

Abstract

The purpose of this research paper is to explore the business strategy development and implementation process behind a firm’s international expansion, and to identify the core components that need to be considered in order for the expansion process to be successful over time. The study particularly focuses on European businesses and their motivations for wishing to expand globally, driven by the recent declining growth and fading competitiveness of the European markets. Through analysis of established literature and recent case studies, the research paper will explore the following five factors, proposed to be of vital importance to the expansion process: business climate; developing a global marketing strategy; regionalization; social entrepreneurship and product diversification. At its end, the study discusses three main activities of importance for the expansion process: to analyze the competitive environment, to clearly define the firm’s position, and to develop their competitive and corporate advantages. It also concludes in a series of basic questions that a firm’s expansion team will have to ask itself, emphasizing the need for planning and research in order to ensure the greatest chance of success in international expansion processes.