The Uppsala internationalization model is based on the notion that entry into foreign markets is a learning process. The model assumes that firms need to follow a gradual approach to their foreign market entry strategies. Some of the factors that guide this internationalization model include the level of commitment offered by the organization and the degree of control of the foreign market required by the company (Bartlett & Beamish, 2018) . The Uppsala model is most applicable in situations where an organization does not have any presence in the intended foreign market; hence, it finds the need to employ a gradual technique of entering the said foreign market. In this circumstance, the organization can undertake an initial commitment through an investment, which enables it to acquire pertinent information regarding the foreign market. The initial commitment made by the firm makes it possible for it to understand the competitors, customer, and market regulations that prevail in the foreign market.
For instance, a US company that seeks to enter into the Chinese market could use the Uppsala model to get assimilated before fully venturing into the market. The company, therefore, undertakes a cycle of investment activities aimed at enhancing its control of the foreign market. For example, if Doritos, which is an American brand of tortilla chips wants to enter the Asian market, it could apply the Uppsala model that will allow it to offer its commitment bit by bit. The company can also team up with other stakeholders on the market to improve its control of the foreign market (Bartlett & Beamish, 2018) . Currently, Doritos has made alliances with local suppliers in Singapore and Japan to export its products, which is a gradual approach to entering the foreign market. As such, the Uppsala model enables all types of firms to enter a foreign market given that it does not require a great commitment because the internationalization activities are undertaken in a gradual process.
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References
Bartlett, C. A., & Beamish, P. W. (2018). Transnational Management: Text and Cases in Cross- border Management . Cambridge University Press.
