Question

What determines the international success and failure of firms?

Answer 1

International sucess or failure of firm is determined by various factors. In an international market , a firm faces a lot of competition from around the world. Although the rate of profits is higher , in case the firm manages to capture the big market of consumers.

Some of the factors which can determine success or failure are :

1. Rate of innovation: If innovation put forward by the company is continuous and of grade quality , the firm manage to succeed or else will fall short of competition.

2. Marketing strategies : In a global world like today ,to survive in an international market , a person needs to have strong marketing strategies. The strategies include brand marketing and using social media to spread the word about the product or service the company is providing.

3. Tapping economies of scale: In long run , a company can only survive if it manages to reduce it's cost of production . The cost of production is reduced drastically if the company manages to take advantage of economies of scale.

4. Quality of products : The most important and basic rule of market is to provide with the best quality products which are durable and are able to form a long term relationship with coustomer . Coustomer loyalty is a major aspect of success or failure of a firm.