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Key Factors Affecting Internationalization Strategy Choice in the IT Industry Exemplified by Microsoft and IBM

Student: Terekhov Maxim

Supervisor: Tatiana Babkina

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2021

The rapid development of globalization dictates new rules to corporations if they want to be successful not only in the local market, but also in the international one. Nowadays, all over the world organizations use computers, software and the Internet in their activities. All of these are IT products. IT companies have their own characteristics on the choice of strategies when entering foreign markets. Since the company is an open system that closely interacts with the outside world, the external business environment has a strong influence on the choice of internationalization strategies, which determines the relevance of the study. This work involves the study of mostly qualitative environmental factors that may affect the choice of a strategy for internationalizing IT companies in the foreign markets. The paper studies the key drivers that influence the choice of internationalization strategy in the IT industry. The paper has introduced recommendations regarding the development prospects of Microsoft and IBM in the markets of China and Russia, taking into account the competitive advantages of companies and external conditions for development.

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