Strategic Choice

Strategic Choice

Pressure for Local Responsiveness

Cost pressure

Low

Low

High

High

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Notes:

Global

FOR Ability to exploit experience curve differneces,

Location economies

AGAINST Lack of local responsiveness

International

FOR Transfer distinct competencies

AGAINST Lack of local responsiveness,

No location economies.

No experience curve advantages

Multidomestic

FOR Ability to customize product offerings for local reponse

AGAINST No location economies

No experience curve effects

No distinct competencies to foreign markets

Transnational

FOR Exploit experience curve effects

Abiliity to explain location economies

Ability to localize

Global learning

AGAINST Hard to do!!!