The International Business Environment

The operations of businesses are based upon defined channels of operations. These channels are recognized in the adoption of media categories in the operations of organizations. Ideally, there are changes in the manner in which the operations of businesses are conducted. An analysis of the operations are necessary, and which outlines the existence of facilities and communal maneuvers related to businesses operations have captured the need for globalization of operations (Edwards et al., 2019). These measures seek to capture a large audience, who inevitably become customers, thus exhibiting the positive growth recognized in the adoption of the theory of internationalization.

Theories of Internationalization

The theory of internationalization relates to the expansion of a company’s operations to capture a global perspective. The theory is derived from the recognition of the available channels of operations beyond the local perspective through the adoption of technology. Traditional avenues of business operations were conducted on the verge of local communities and within interstate boundaries. The international business relied on a network to expand their operations beyond the home country (Fraccastoro et al., 2021). Ideally, in the wake of the technological era, an expansion into the global market is a necessity, as the demand for products is not led to the home market.

In evaluating the growth and expansion of Netflix, the operations of Netflix began in the early years, when technology was just in its incubation stages, and there was no certainty of the growth of technology to capture the margins perceived today. In such regards, Netflix adopted the available operations, and distributed its products to communities as needed, to capture the clients in the specific communities.

The theory of internationalization relates to the manner a business growth, and eventually captures a growing audience, as well as expanding operations beyond borders. The first stage of a business is in its innovations. In 1997, Netflix began its operations, and a key reason was to ensure that communities could access movies and documentaries. The inception and the ideas were chosen have remained to be the key motive of the operations of Netflix. The distribution channels were theory post, and as such, there was a derivation of the needs of communities concerning receiving their films as needed in VCR and DVDs.

The growth of the company, in its maturity stage, was recognized in 2007, when the company launched streaming service. Ideally, Netflix was changing its tactics of doing its business but still tied its purpose in providing communities with needed opportunities to access their media (Lotz, 2020). The standardization measure, adoption of an international theory is realized in 2010 when the company shared its platform of access to media content through the internet across the world.

Internationalization, a trend in which companies are operating across the world, is a good avenue for the adoption of peaceful coexistence between communities. A continued acceptance of the operations of the organization capture the differences between different communities and cultures and help to alleviate differences between them.

Application of Theories of Internationalization

Theories of internationalization capture the need to integrate communities in the provision of needed operations. In this regard, there is an established measure of operations and which cater to the different communities. A business operating in the local community contrives a need to relate to clients with little or no social varies. As the company opens its operations to capture the global arena, there are different communities, and whose perception of the product could be biased on cultural restrictions. The application of international theory captures the need to engage the communities in content that resonates with the specific communities chosen. There are also expensed needs to introduce content that relates to the specific community.

Netflix operates as streaming media for movies, series, and documentaries. As the company expands into other markets, for example, Africa, there is a need to incorporate content from Africa. In such a manner, Netflix sacralizes its operations to fit the community in which its operations are conducted. The theory of internationalization has a wide conception. In its operations in the global perspective, the company has to take into consideration other existing companies. These are competitors, and other organization providing related services. In relation to Netflix, the company, in its streaming services, has to integrate other companies operating in the media industry (Borroughs, 2019). These include theaters, streaming subsidiary organizations, and even internet service providers. The provision of streaming services would be ineffective, without consideration of the availability of internet service providers, who will engage clients to access the media content. The inception of a business in the global, arena, for that matter, contrives an increase in the opportunities for the communities.

Reasons for Expansion into International Business

Expansion into an international market is driven by the operations of the company. All organizations are always planning measures in which their operations will be well-identified. After the company has satisfied the local community, the focus is on improving the quality of the products provided and engages other avenues of operations. The goodness of the product will also push an organization to seek to satisfy more clients. The reasons for an expansion into an international market by Netflix is a way to expand product service delivery and reduce operational costs (Rumgaswamy et al., 2020). Netflix has harnessed its service on an international market, and as such, has helped in the minimization of costs of operations. the second reason for expansion relates to access to technology. Technological innovations are becoming better every day. From an international business perspective, the availability of technological devices is an opportunity that can be explored. Netflix expanded its operations to tap into the internet resources available in those other countries. In operating in the international arena, the company will reduce its obligations on tax. The necessary expansions and minimization of costs are captured in operations that seek to improve lives across all communities. These initiatives realign the taxing parameters to the benefit of the organization. Expansion to the international market is also necessitated by overcapacity. Netflix realized that its resources exceeded the local streaming in communities. Ideally, the company could handle more clients with ease. An expansion into the international market was a move to utilize the extra resources.

Modes of Entry in the International Market

The operations of entities and the strategies employed to capture the global audience will define the success of the organization or its failure. The first entry strategy is indirect export. This process includes the provision of products that relate to the needs of different entities. In recognition of these measures employed, organizations involve local communities in sharing products the products are controlled from the international market. The advantage of the employment of indirect export is the low cost of inception. The operations of the company are based upon the measures derived by the community. In this regard, the company expends little and acts as the middle man between clients and customers. The disadvantage of indirect export is a challenge of legal tussles and the breach of constitutional prohibitions (Wolf, 2020). Clients who sell defective products will be safeguarded by the intermediary company, and the entrepreneur will be confronted by the complaints from clients who did not sell products but only necessitated the client to acquire them.

The second entry star eggy is equity entry. Equity entry relates to accompany establishing operations with existing companies. A company will purchase shares or create a platform in which it will create an interaction with another organization. the company provides an avenue in which the two companies will work together in the provision of services. The advantage of equity entry is that the organization will create operations that relate to its operational capabilities. The company construes a wide measure of recognition of operations in the manner in which the company will expand its operations by utilizing resources from both companies to stabilize operations. The disadvantage of equity entry is the challenge of the definition of leadership. As the company realized growth, the members who ate partisan to its existence may demand more. All the key players will need to be recognized as the key players in the organization.

Non-equity entry. in this strategy, the organization takes precedence e of its e[rations. There are no trade restrictions, and the facility will capture needed attributes of growth through development planning until the organization grows to capture its target market. The advantages of non-equity entry are an increased control of the company, a good plan, and engagement of clients, and a substantial potential to grow (Cahen & Borini, 2020). Additionally, the company will not have leadership tussles, as the investor is responsible for the operations of the company. The disadvantages of non-equity entry include entry restrictions in specific count ruses. These are rules existing in the foreign market arena, and which relate to the needs of the organization. in this regard, the company will shave to create ties with foreign governments, and which are not guaranteed. The disadvantage is that in the case that the company is unable to sustain its operations, the proprietor will experience the total loss.

The success of Foreign Expansion Modes

Expansion into the international arena is a rends that many companies have adopted and have been able to grow in the provision of services. in Japan, Lotte company has extended its operations to capture the international market. Key among the measures which were employed by the organization include acquisitions. These measures relate to the company buying other existing companies and sustain gather operations. Lotte bought Buy.com, Play.com., and Kobo among others. The success of the corporation relates to equity entry. the company has established itself by buying shares from these technological giants and has thus construed an operation that captures its success.

The antibot Amazon into the international market is recognized as a non-equity. After the commonly has incepted itself to realize these global measures, it established itself as a reputable organization, as well as applying some middle man n=maneuvers in the provision of its products. After the company had established itself fully, it employed non-equity methods but acquiring other companies which provide related services. these are the measures that have kept Amazon online in the provision of services. The companies which have been adopted by Amazon include Zappos. The company also developed other services, and which it manages through its platform, which include an integrated network service (Di et al., 2019). The measures employed by Amazon have seen the operations of the company to become the best in its operations and to capture needed attributes of growth as a leader in internet services.

The entry of Netflix into the global market is based upon a non-equity agreement. The company construed wide growth measures by expanding its existing platform of sharing content from a local level to an international level. The entry-level of Netflix, which is neither an independent investment, is aligned to the non-equity method of growth. In recognition that Netflix had its operations before it entered the international market, the entry-level can be categorized as an upscale measure in the provisioned of its services and a growth of client base. Netflix engaged with another apple by providing their app in the app store, and conjured growth to users of phones and providing its service across the world.

The identified organizations have realized success in the international market by engaging different operational attributes. Tone key identification is that the organizations have had to scale up and engage expand their operations through subsidiaries. The success of Amazon is related to the diversity in the provision of services (Braga et al., 2019). Amazon began by providing a small level of operations in the selling of eBooks. These trends have transitioned into other avenues of service delivery. Widening the market is one of how international corporations have been able to grow.

For Netflix, the initial operational measures, and the purpose for its inception stands. The provision of movies from door to door through the post office, and eventually adopting a worldwide streaming service, but still, the idea is upheld, the provision of movies and films to people. The measures realized by these organizations are necessary to capture the international market. As technological advancements increases, these ideas of expansion of an organization into a world preserve are necessary for startups. The international market provides a wide choice of opportunities for the organization. A good panning mechanism is necessary to ensure that the company grows in its operations.

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