Global market research emerges as a cornerstone in the formulation of effective internationalization strategies. It provides companies with invaluable insights into market opportunities, consumer preferences, competitor behavior, and regulatory frameworks in target markets. Companies that conduct robust global market research can make informed decisions, mitigate risks, and capitalize on opportunities, thereby enhancing their competitiveness and increasing their chances of success in foreign markets.

Internationalization is one of the most complicated strategies that any company can undertake. Today, market globalization makes it even more necessary, because it helps countries to get into foreign markets.

Internationalization strategies and decisions are based on performing several studies and analyses related to the kind of market, the brand possibilities, having a successful product in the national market, knowing how to adapt it to the target market, knowing the competitors, pricing, rules and regulations of the selected country or countries, as well as having an efficient exports logistics. If the company has a financial base, it must consider greater penetration into the markets and evaluating the chances to get into new ones for better internationalization.

According to Lerma and Marquez (2020), for a company to survive and succeed in a globalized setting it is necessary to develop competitive characteristics and mechanisms, because even inside its own market it faces international competition. Another important concept is economic globalization, which entails what is produced and sold in those places of the world that are deemed convenient.

Source: Lerma, A., and Marquez, E. (2020). International Trade and Marketing (5th ed.). Mexico: Cengage Learning.

Globalization comprises several stages, from tariff preference agreements to economic and social aspects that pose both opportunities and risks. However, preparations must be made for international setting changes and for strengthening global standing, but mainly for understanding the reasons to globalize (Lerma and Marquez, 2020):

• To expand markets.
• To increase profit.
• To increase stability.
• To find better prospects in critical situations within domestic markets.

International competition

To get into international markets, it is necessary to analyze the competition that offers the same or a similar product or service. This is what marketing strategies depend on. By performing a SWOT, the company will be able to know its place and where it can and wants to get to. For this, a series of elements in the competition must be analyzed, as described below:

Source: Lerma, A., and Marquez, E. (2020). International Trade and Marketing (5th ed.). Mexico: Cengage Learning.

According to Kerin and Hartley (2018), when making a marketing program, companies must take factors that boost the competition into consideration: entry, buyer and provider negotiation power, existing rivalries, and substitution possibilities. Scanning a setting requires analyzing all of these. These factors are related to the mix of marketing decisions of a company and could be used to create a barrier that prevents the entrance of other competitors, increases the recognition of a brand, or intensifies the struggle for market participation.

Market research

The usual steps in a market research process are:

• Identifying the need for information.
• Looking for secondary data.
• Collecting primary data.
• Interpreting the gathered data.

The concept of competitivity in international marketing

According to Lerma and Marquez (2020), competitivity denotes the possibility to triumph over other offerors when comparing substitute products by having a higher chance to be favored by the consumer's purchase. Competitivity, in foreign business terms, depends on conditions present in these two levels:

• Macro-structural: includes the basic and general conditions of the country or region needed for companies to operate efficiently.
• Micro-structural: conditions at the level of a company and product that can make the merchandise move into the target markets successfully.

Next, the elements to consider for each competitivity level in international marketing are shown:

Source: Lerma, A., and Márquez, E. (2020). Comercio y marketing internacional (5th ed.). México: Cengage Learning.

Advantages and disadvantages of internationalization for the company

There are many factors to consider for a company's internationalization, and for this reason it is of utmost importance to understand the desired target market well. A company's internationalization entails many benefits, but also many risks. Therefore, we must know which are the advantages and disadvantages.

Source: Lerma, A., and Márquez, E. (2020). Comercio y marketing internacional (5th ed.). México: Cengage Learning.

Even though the advantages of internationalizing a company are abundant, the danger its implementation involves should not be ignored. The fact that this process is not easy to follow must be kept in mind, and thus a correct strategy is needed.

Another thing to consider is the economic, political, and social context of the country because it can be decisive, particularly in the purchase of products. Finally, we must note that governments tax import distributions through custom duty, which mission is to safeguard national industry.

Real-world example: Starbucks' international expansion

Starbucks, the global coffeehouse chain, provides a compelling example of strategic decisions for competitiveness in international markets. The company's internationalization strategy involves extensive market research, adaptation to local tastes, and strategic partnerships.

1. Market research: Starbucks conducts thorough market research to understand consumer preferences, cultural nuances, and competitive landscapes in target markets. This research helps in tailoring products and marketing strategies to local tastes.
2. Product adaptation: Starbucks adapts its menu to include local flavors and preferences. For example, in Japan, Starbucks introduced beverages like Matcha Green Tea Latte to cater to local tastes.
3. Strategic partnerships: to enter new markets, Starbucks often forms joint ventures and strategic alliances with local companies. For instance, in China, Starbucks partnered with local firms to navigate regulatory requirements and understand the local market better.
4. Competitor analysis: Starbucks continually analyzes its competitors to refine its strategies. Understanding the competitive landscape helps Starbucks position itself uniquely and maintain its competitive edge.
5. Export logistics: efficient logistics and supply chain management ensure that Starbucks can maintain product quality and deliver a consistent customer experience across different markets.

By aligning its internationalization strategy with market realities and leveraging its strengths, Starbucks has successfully expanded its global footprint, demonstrating the importance of strategic decisions for competitiveness in international markets.

Strategic decisions for competitiveness in international markets are crucial for the success and survival of companies engaging in internationalization. Companies must adopt a prudent and strategic approach, backed by thorough market research and analysis, to navigate the complexities of international markets and achieve sustainable growth and success. By aligning their strategies with market realities and leveraging their strengths, companies can unlock new opportunities, mitigate risks, and thrive in the global marketplace.

Make sure that you:

• Understand the importance of global market research in formulating internationalization strategies, as it provides essential insights into market opportunities, consumer preferences, competitor behavior, and regulatory frameworks.
• Analyze the competitive landscape in target markets using tools like SWOT analysis to identify strengths, weaknesses, opportunities, and threats, which helps in strategic decision-making for market entry.
• Evaluate the macro-structural and micro-structural conditions of target markets to determine the overall competitiveness and feasibility of entering those markets.
• Identify the advantages and disadvantages of internationalization, recognizing the potential benefits like market expansion and increased profitability, while also being aware of the risks and challenges involved.

• Kerin, R., and Hartley, S. (2018). Marketing (12th ed.). Mexico: McGraw-Hill.
  ISBN: 9781456260972
• Lerma, A., and Márquez, E. (2020). International Trade and Marketing (5th ed.). Mexico: Cengage Learning.
  ISBN: 9786075269153