Several models attempt to prescribe how companies should internationalize. Here are the best of these models is synthesized in "Way Station" approach. It's tempting to take the "Low Road" (short-term, low-cost) approach to travel planning, choice of transport engaged in road blocks, and commitments. But success is most often achieved through the adoption of High Road. Low Road is calculated based on anecdotal evidence, responding only to direct markets by exporting low-cost labor markets, choosing markets based solely on cultural similarities, do not have property management, based on some obvious customers, responding to problems with untested answers, getting in the price wars, and do not compete on value rather than invest in the company as part of a global portfolio. The High Road, by contrast, emphasizes a thorough market research, forecasting future customers and their needs, leading to strong determinants of success extensively, maintaining over 50% control, diversification of the customer base, taking a long-term perspective, considering the new foreign company as an integral part global strategy, and focus on new technologies in foreign enterprises by feeding it back into the internal operations. Even small businesses can take High Road. "Hide
by Joseph A. Monti, George S. Yip Source: Business Horizons 8 pages. Publication Date: July 15, 2000. Prod. #: BH052-PDF-ENG
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