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International Strategy
Try to create value by transferring valuable skills and products to foreign markets where competitors lack those skills.
Usually differentiated products. Try to centralize product development functions at home
Marketing and manufacturing where they do business. Limited localization of the product.
Makes sense if the company has a distinct competency that indigenous competitors lack and face weak pressure to localize and cost reduce.
Mulitdomestic Strategy
Achieve maximum local responsiveness. Like international tend to push home designed products. Extensively customize. and have R&D, manufacturing and marketing abroad.Don’t realize economies of scale and may have a high cost structure.
Makes sense when there is high pressure to localize and weak pressure to cost reduce.
Very autonomous…don’t transfer skills
Global Strategy
Want to increase profitability by by reaping cost reductions that come from experience curve.
Low cost strategy. Makes sense when lots of cost pressure and not much pressure to localize Market a standard product worldwide Industrial goods.
Transnational Must be able to reap economies of scale, transfer competencies and pay attention to being locally responsive. -Distinctive competencies don’t have to be at home…Global learning
Makes sense when high pressure to reduce cost high pressure for local responsiveness