In the case of Innocent Company, the major reason to internationalize would be to expand the company’s operations, as currently, the operations of this company are limited to the European continent only. This is a more proactive reason that also relates to growth in revenues and sales, an expansion of the company’s customer base, alternative sources of labour and the reduction of the company’s dependency on only one market for its revenues and sales. The Nine Strategic Windows Model focuses on the conditions under which a company should internationalize or not internationalize, and considers these two as extreme positions.
The perspective of Solberg on this is based on two dimensions of industry globalism and preparedness for internationalization. The international competitive structure within an industry is considered a basis for determining the strategic behaviour of a company. When the level of globalism in a particular industry is high, there will exist different interdependencies between players in the industry, including suppliers, customers and markets. On the other hand, the industry will be dominated by a few powerful key players who in this case are global, and local players who represent the domestic market (Steenkamp & Frankel 2002). With regard to the degree of preparedness for internationalization, the company itself plays a major role in determining this extent and this is particularly through its ability to strategize well in the international market including skills, international experience of managers and adequate financial resources.
A mature company with these aspects is considered ready to internationalize, and is capable of increasing its market shares through this (Steenkamp & Frankel 2002). Nonetheless, in the context of the Innocent Company, it can be noted that the company is well prepared for internationalization, and is mature enough to brave any challenges that may come up in the course of its internationalization process.
For instance, as seen, the company has adequate financial resources that enable it to enter into foreign markets without accruing any large debts. On the other hand, the managers of Innocent Company are well-experienced and have served the industry for many years, including within and outside Europe even before the establishment of Innocent Company. Although Innocent Company can be considered to be prepared for internationalization, it is important
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