Dunnings eclectic Principle Essay Example | Topics and Well Written Essays - 1250 words

Dunnings eclectic Principle - Essay Example The given three principles have been taken from various theoretical approaches; hence John Dunning labeled his approach as ‘eclectic’. It was Dunning who in the year 1980 which was given in Dickens in the year 1992 that any company would like to get itself engaged in the production arena internationally if the following three conditions are present. (Dicken p.109)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  1. Every company possesses few specific advantages which if not in possession by any competing companies belonging from other nationalities where the advantage should be owner-specific in nature. (Dicken p.109)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  2. These kind of advantages are mostly exploited by certain companies itself rather than leasing or selling them to different companies. Citing it in different words, every company tries to internationalize the nature of ownership-specific advantages; and(Dicken p.109)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  3. it is more profitable for every company in exploiting the assets in international market other than doing it in domestic areas. It is true that factors like location-specific plays an important role with internationalization of the very nature of owner-specific while determining whether and where the overseas production takes place. (Dicken p.109)      Ã‚  The Advantage of ownership-specific is an asset which is internal to the company itself. In this case knowledge of specific type, human skill or organization and all these do require proprietary right for its use, like any right which is legally protected. (Dicken p.109) Extent and pattern of the internationalization its value-chain operations abroad: Calypso Rose when she was 29 became renowned in the business of accessories and bags. This particular business is now six years now and it is aiming at young women and teenage girl. This is a age of globalization and in this time it is necessary to make the business global. Clippy bags are the brand name and have gained recognition. They have kept this thing in account that global expansion strategy is in needful of the present hour. Presently the business surrounds the Japan and European market. (GLE Group pp. 1-3) Calypso Rose the tycoon business woman has been successfully running the business since the age of 23. The particular brand name ‘Clippy’ now has been successful in carryimg out international venture in different markets thereby gaining the company to strengthen its fundamental base in UK. They could do so by taking the help from the team of London International of UK Investment and trade. (GLE Group pp. 1-3) The brand Clippy brand has established a good stronghold in UK market before they were recognized internationally in the year 2007 by London International Trade Adviser, Gail Williams. the advice given by Gail Williams in the strategic area was useful in the early stages of the company especially in the export journey which helped the company to bring f orth the brand Clippy in the international market. During the time of recession in the year 2008, Calypso in a very intelligent manner expanded and modified her business for survival in this weird market. (GLE Group pp. 1-3) Utilization of certain schemes, by Calypso, likes the Trade Access Program (TAP) and Passport for Export so that their product can be put up on international base. In addition, the assistance from an international adviser on trade has helped Clippy a lot in formalizing the export strategy for targeting the markets of Europe. The funding which the company received from TAP helped them in exhibiting in the European market. During this period Calypso met her European distributor. Being a small company it believed in cash flow so funding became invaluable. With the success, which it got initially, helped the compan