In USA, they are the number one leader in producing chocolates but on an international market scale, they only placed sixth place. They lag behind their competitors, Mondelez International (MDLZ), Ferrero, and Nestle (NSRGY) because they placed more importance on the North American market( US and Canada). But they are reaching out to more international markets like Brazil, China and India. So, in the future they will increase their total revenues to 50% from 30%; a 20% increase. 

This company started out domestically first, then went on to invest in international markets.

 

On the other hand, international growth comes after market dominance because for doing international business it is necessary to increase companies’ budget for producing goods and services more, compared to the production in the domestic market. As, international development is a wide concept, so it is mostly concerned with an international scale.

 

For example, Apple Inc. is one of the world’s largest information technology company by revenue, the world’s largest technology company by total assets, and the world’s second-largest mobile phone manufacturer in the world. Based on my research, Apple Inc. first made the market dominance in California (USA) and expand their business in USA. Moreover, as the demand of Apple Inc. products increased as well as rise in shares lead Apple Inc. to do business internationally. So-far, Apple Inc. made both market dominance and international growth.

International growth is the process of the brand / product / service / firm or organization growing globally.

 

Market dominance usually comes first then International growth follows because a company needs to expand or get recognized first before it growing internationally. This means: a company should develop new ideas, improve customer service, improve distribution effectiveness and know its target market and competitors.

 

An example supporting this can be: Coca – cola was created first by a pharmacist, It first began in Atlanta Georgia, where it was sold in a local pharmacy. At first, nine drinks per day were sold. Then later the company began to grow and now it is the largest seller of non – alcoholic beverages in the world. Fast forward to today where Coca – cola is a large International beverage Industry serving customers all around the world.

  Another important element is geographic location. As people lives in different geographic locations, they have their own cultural backgrounds. The company need to know other country’s culture in order to deliver the product that suits people in other different culture backgrounds in order to be competitive with the domestic market in other countries.

  One of the example would be Starbucks. It started first in Washington US in 1971 by three university students. Currently, we can find Starbucks in most part of the world including China and Mexico. Their further development is to have 850 stores in Mexico to gain more revenues.

They have dominated the global market because they sell coffee brewed with high quality coffee beans compare to other coffee offered by competitors in the fast food industry. Even though that the price is higher than the competitors, it still satisfied customers domestically and internationally.  

 This is a good example that a company started and expanded domestically, then it became globally known to the world.

 

An example of market dominance is Zara. The first Zara store opened in 1975 in downtown A Coruña, Galicia, Spain by Amancio Ortega. The first store featured low-priced lookalike products of popular, higher-end clothing fashions. During the 1980s, the company changed the design, and distribution process to reduce lead times in a quicker way, because of this it became the world's largest apparel retailer.

The market dominance focuses on consumer requirement, to organize all of company’s resources, for producing high marketing quality production. It can make consumers’ brand loyalty, and can turn brand into company’s assets. Once the market dominance building up, the company could use company resources to take more and more marketing share in both local market and foreign markets. 

Without the market dominance, the company’s marketing share is hard to grow up. Maybe the marking is still at international level, but there could be no more growth. The international growth may use difference resource of company comparing with market dominance, which means company could only gather the necessary resource for market dominance at the beginning. 

Apple Inc. is an example can explain the relationship between the market dominance and international growth. At the time of the first generation IPhone was putting on the marketplace, there were no such success like today’s Apple got. As time goes on, the high quality design and more and more apps, kept the IPhone consumers on Apple brand tightly. Almost all of them won’t go back to Motorola, Nokia or Sony. By the great fashion impact of the North America flowing to the worldwide, the IPhone4 made Apple standing on the position of cellphone market dominance. Following by IPhone5&6, Apple’s international growth could be the best in the cellphone marketing shares. 

 

The related example that support the idea for this would be Apple Inc. Apple released all the products first in the United states like iPhone, I watches, iPod, etc. than going internationally. Apple use this strategy to gain the market dominance and support of domestic market by using different marketing techniques like various advertisements, promotion before launch, etc. Once the item gets complete successful response in the United States the company extended to outside business market. Because of this marketing technique, today we discover more Apple items sold globally in many countries. If the product is not getting the amount of success in domestic market as expected it would be very hard to perform that product internationally. So basically market dominance is the first priority for any business to expand and trade globally as well. 

 

An example of market dominance is Coca-Cola. Nowadays, Coca-Cola is very famous for soft drink internationally. Coca-Cola occupied 48.6% of carbonated beverages worldwide market in 2015, and its net operating revenue was around US$ 45 billion. However, it took almost two decades to start to sell the beverages in other countries. Market dominance in the U.S. let Coca-Cola go international. Having almost 50% of recent market share can prove that Coca-Cola has held strong recognition from consumers, influential market power. As a result, Coca-Cola has the capacity to conduct effective advertising, to adjust its promotion globally. Therefore, Coca-Cola is able to expand its market worldwide and to gain international growth more and more.

 

It really depends where the company lies or at what phase is the company lying in the market. Both are important at different stage of business cycle. Market dominance takes the first importance. If a business is new in the market and the product or service is in high competition in the market, I feel market dominance is more important than international growth. The business should try to establish its home market first and strengthen its brand, product or service, strengthen the size of the business and making it better than the competitor should their main focus. Once all of these are achieved the business should go towards International Growth, as it is more important if the business is well established and settled then they should focus on taking it to international level. But there are some exceptional businesses that only focuses on international growth like service industries. 

 

Xiaomi is a Chinese consumer electronic company, it started manufacturing in China and gained the market share within a short time in China. Once they achieved market dominance, the company tried international growth and achieved market share in India, Malaysia and Singapore. Xiaomi is now the third largest smartphone maker in the world in 2014. It crossed over 300 million units for first time. It gained 34 percent market share in China. And then moved globally.

 

Your Bibliography: "Xiaomi Now Third Largest Smartphone Maker, Indian Companies More Dominant At Home: Canalys". The Indian Express. N.p., 2017. Web. 25 Feb. 2017.

 

http://indianexpress.com/article/technology/mobile-tabs/xiaomi-now-no-3-globally-indian-companies-becoming-more-dominant-at-home-canalys/

 

A company that appeared on the ABC channel show Shark Tank was Scrub Daddy. This company is an excellent example of a company that first gained dominance in their domestic market before expanding the company into the international market. Before appearing on Shark Tank, founder of Scrub Daddy Aaron Krause created and sold his product in five supermarkets in the Pennsylvania state, in addition to selling them via ecommerce. After appearing on Shark Tank, he was able to get a deal and with the help of Lori Greiner, Scrub Daddy was a regular on the American broadcasting television network QVC, which helped the company grow enormously not only in the U.S., but worldwide. The company was able to get the original Scrub Daddy, along with the other product lines into various stores worldwide including, Bed Bath & Beyond, The Home Depot, Target, Wal-Mart and Lowe’s to name a few. To this day, Scrub Daddy has grossed over $50 million dollars in sales, and it is a prime example of a company dominating their market, domestic market more specifically, and then being able to grow internationally.

One of the examples would be Starbucks, the first Hollister store opened in Washington US in 1971. 10 years after its market dominance, Starbucks started the store expansion world widely. In nowadays, we can see how successful it is, it operates 23768 locations worldwide mostly in US, China, Canada etc. 

It would be more difficult if they had taken another approach in trying to establish their company by targeting international growth before market dominance. A good example of this would be when the US retail company, Target, did not succeed in Canada some years ago. While Target did not achieve market dominance within the US, it tried to expand their operations to Canada but quickly failed and lost billions of dollars in the process. Alternatively, the giant retail company, Wal-Mart, was able to achieve international growth by primarily focusing on market dominance. 

Coca Cola and Pepsi Cola control the global market in the soft drink industry. These two companies expanded globally after controlling the soft drink industry. Their control of the market made it impossible for competitors to enter the market and made the competition to be just between them. 

For example, Samsung has successfully entered the international market as it began to dominate its domestic smartphone market.

For example, Netflix was founded in U.S and it offered streaming service to Canada and kept offered the service to other countries. And now, Netflix is everywhere in the world except few countries, Mainland China, Syria, North Korea and the territory of Crimea (Wikipedia). This entertainment business was acknowledged by both people in its country and has succeeded in worldwide countries.

 

 

 

LG Electronics could be the representative example for this. 

In Korea, LG Electronics is well known as its innovative washer technology for decades.  Not only in the domestic market, but LG was named the number one washing machine brand worldwide in 2014. It was top-ranked again in competitive US market for 8 consecutive years. LG has been able to expand the market in Europe and dominate it globally as well as in North American market. 

Yet the rank doesn’t have to be in that order. We can find many corporations which are doing great out of the country, whereas domestic sales are comparably lower than its external market. 

 

International Growth Definition: The process of taking a business to foreign nations; either an operational move to produce products at a lower cost or a marketing strategy which involves selling an existing product to a new market (Wikipedia).
 
Analysis
Relative to the definitions above, I believe that market dominance must first be achieved prior to international growth. Conclusively, in order for a company to take its products or services abroad, it must initially become a successful competitor in its home industry, thus holding a considerable degree of market power. Connectively, international growth cannot be achieved without the former as it is based on the continued growth of a corporation. International growth is the consequence of a business productively gaining consumer interest and profit in its home market and aiming to further develop profit and power beyond its borders.

One company that has gone through this process is Tim Hortons Coffee. Tim Hortons was founded in 1952 in Canada. The company was originally concentrated only in Ontario and in Atlantic Canada. In the beginning, Tim Hortons was not well known for good coffee and food, causing poor customer feedback and low profit. However, in the 1990’s the company decided to change their marketing strategy and focus on improving towards its flaws. Throughout its journey Tim Hortons had a merger with Wendy’s and was finally bought off by Burger King in 2014 for $11.4 billion. The take over resulted in Tim Hortons firmly focusing on expanding store locations, increasing customer satisfaction, and increasing profit. The new goals and strategy gained the red coffee brand superior market dominance in Canada. Once the company had developed power in the industry, it aimed to expand to foreign nations. In recent years Tim Hortons has opened multiple stores around the world. Today, the corporation has stores in Ireland, Oman, Saudi Arabia, Kuwait, the UAE, the UK, United States, and the Philippines. 

In conclusion, Tim Hortons was a company that was initially considered as incompetent and adolescent in the coffee industry. However, through their strategies and commitment, they have gained considerable market power and continue to grow internationally; therefore following the correct process of market dominance to international growth. 

Coca Cola is an example of a company that has gone through these two levels of growth. Pharmacist John Pemberton founded the Coca Cola Company in 1886 in Atlanta, Georgia (Wikipedia.com). The soft drink company first catered to the local market and slowly expanded across the United States. Once Coca Cola become a well-known name in the American industry, holding formidable market share and power, it continued to the next level of growth by expanding to the world.

 

Today, Coca Cola is one the world's largest corporations. The company literally serves in all countries, except North Korea. The red Coca Cola logo is found everywhere on earth, whether it is a café in Europe, a rural village in China, in a billionaires house, or in the slums of India, the Coca Cola brand is sure to be found. This proves that achieving market dominance is necessary prior to growing internationally. 

For example, Apple Inc., In 2016, The  iPhone 7, iPhone 7 Plus and iPhone 6s are the most popular models on the US market, with the share of the three iPhones reaching 31.3%.In addition, during the iPhone in the UK market share has achieved the most significant growth. This time period, iPhones in the UK accounted for the market share growth of 9.1%, mainly due to the decline in the share of Windows smart phones. IPhone in Australia, France, Italy, Japan, Spain, the United Kingdom and the United States market share in the period to achieve growth, and in contrast to this, in addition to Italy, the other six countries, Android Share has declined. Even in Italy, Android smartphone share growth is only less than half of the iPhone.

In conclusion, Apple Inc. is choosing the first way of receiving the international growth in the world and then becoming market dominance in its original country.

After that, international growth can help companies to enter in a foreign market. the best way to start is by evaluating your organizational capabilities in order to reveal your potential for growth. First of all, we should discover potential of your business then select the market that you want to enter and then develop the strategy which we will to apply.

Nike Inc.'s generic strategy for competitive advantage emphasizes product mix diversity. The generic strategy, defines Nike how a business achieves and maintains its competitiveness. On the other hand, Nike's intensive growth strategy show the company's focus on innovation to develop the business.  Nike Inc. has grown to become one of the biggest players in the global athletic shoes, apparel and equipment market. To keep its position and competitive advantage, Nike must ensure that its generic strategy and intensive growth strategies are always suited to current business conditions.