Diversifying into overseas markets requires setting important goals, such as increasing market share. Market share can be increased by introducing various solutions to foreign markets. One of the most important ways to gain market share is innovation. Innovation involves creativity, especially when a company is working on producing new products or revamping existing ones to benefit customers in foreign markets (Corporate Finance Institute, 2015). The company can also increase its market share in foreign economies by lowering prices. It is important to recognize that there is competition from competing firms in the external economy into which the firm ventures. To fend off and overcome this competition, companies can make the important decision to lower their prices and sell at slightly below the usual market price. This helps in attracting more customers, increasing sales and ultimately increasing the company’s hold on foreign markets.
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