Final answer:
Sonyo's approach to global expansion by first entering the European market before moving into the more complex U.S. market is representative of the Stages Model of internationalization. This strategic, step-by-step approach aligns with their gradual increase in foreign market involvement commensurate with their experience.
Step-by-step explanation:
The Stages Model, also known as the Uppsala Internationalization Model, suggests that firms initially enter new markets that have less psychic distance and gradually increase their involvement in foreign markets as they gain more experience. Sonyo's initial entry into a Taiwanese-like market in Europe before moving into the more complex and competitive U.S. market aligns with this approach. This sequential approach helps mitigate the risks associated with understanding new consumer markets, navigating regulatory environments, and creating distribution channels. Sonyo's experience in Europe positions it to leverage its international experience while acknowledging the complexity and competitive nature of the U.S. market, which has evolved significantly due to globalization. Historically, local giants like General Motors, Ford, and Chrysler dominated the U.S. market, but today face stiff competition from global players, impacting market concentration ratios and Herfindahl-Hirschman Index (HHI) across industries.
By adopting a step-by-step approach, Sonyo is attempting to replicate its European success in the highly competitive U.S. market, indicative of a methodical and strategic internationalization effort as it scales its operations globally.