The multinational companies have to adapt to the changes and complexities in the global landscape to survive and thrive in the competition. In such case, the strategy adopted by the company plays vital role as it defines the approach with which the company will be offering its products and services in the international market (Hitt, Xu, & Li, 2015). The multinational companies use global, multi-domestic or transnational strategy depending upon the nature of the products offered. As an in-charge of developing strategy, I would use the following strategy for given products:
Mobile Phones
For mobile phones, using global strategy would make a better sense. The global strategy is a think global and act global approach to strategy making where same products are sold under same name using same distribution channels in all the countries. The fundamental competitive approach of the companies also remains the same worldwide (Gamble, Petaraf, & Thompson, 2015). The people in every part of the world want similar features in mobile phones like long battery life, user friendly design so the technologies, design, features, style remain same for every country. It can be offered in any part of the world with minor adjustments to accommodate with the specific situations in host countries.
Dry Soup Mixes and Canned Soups
In case of dry soup mixes and canned soups, it is more advisable to use multi - domestic strategy than global strategy. Multi-domestic strategy is think local and act local approach to strategy making where the same products can be sold under different brand names in different countries. There is significant differences in the consumers’ tastes, preferences and buying habits regarding the food items. For example: People in some countries like spicy food while some like boiled foods without ant spices. Similarly some like non-veg food items while some are inclined towards vegetarian items. So, to address the different food preferences of people living in different part, we need to produce and sell different products for different regions implying multi-domestic strategy.
Home Appliances
For home appliances like washing machines, ranges, ovens and refrigerators. It would be better to use global strategy. As mentioned earlier, global strategy emphasizes on gaining economies of scale by offering the same products or services in every market. However, we need to make certain minor adjustments and modifications can be made to address the issue regarding voltage, power consumption and power outlet of the host countries at lower cost (Creative Commons, 2012). As a producer of home appliances, we need to follow certain global standards while manufacturing the products and focus on building a global brand for which there is no better option than using global strategy.
Apparel and Footwear
As a company producing apparel and footwear, it is wise to use transnational strategy. It is think global and act local approach to strategy making that incorporates country-specific variation to accommodate cross- cultural variations and strive for benefits of standardization at the same time (Gamble, Petaraf, & Thompson, 2015). It allows the company to remain a global brand by considering the cultural and societal value of the host country. The quality of the product remains same in all country while the production, distribution and marketing strategy can be customized to address the sentiment of people of a particular country.
These strategies vary in terms of their emphasis on achieving efficiency around the world and addressing the needs of local people. The company needs to carefully look at the nature of their product, rules and regulations of host countries and consumption pattern of the people before decision on which strategy to use.
References
Creative Commons. (2012). Types of International Strategies. In Strategic Management: Evaluation and Execution. Retrieved from 2012books.lardbucket.org/books/str...
Gamble, J. E., Petaraf, M. A., & Thompson, A. A. (2015). Essentials of Strategic Management: The Quest for Competitive Advantage (Fourth ed.). New York: McGraw Hill Education.
Hitt, M. A., Xu, K., & Li, D. (2015). International Strategy: From Local to Global and Beyond. Journal of World Business . doi:10.1016/j.jwb.2015.08.016
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The multinational companies have to adapt to the changes and complexities in the global landscape to survive and thrive in the competition. In such case, the strategy adopted by the company plays vital role as it defines the approach with which the company will be offering its products and services in the international market (Hitt, Xu, & Li, 2015). The multinational companies use global, multi-domestic or transnational strategy depending upon the nature of the products offered. As an in-charge of developing strategy, I would use the following strategy for given products:
Mobile Phones
For mobile phones, using global strategy would make a better sense. The global strategy is a think global and act global approach to strategy making where same products are sold under same name using same distribution channels in all the countries. The fundamental competitive approach of the companies also remains the same worldwide (Gamble, Petaraf, & Thompson, 2015). The people in every part of the world want similar features in mobile phones like long battery life, user friendly design so the technologies, design, features, style remain same for every country. It can be offered in any part of the world with minor adjustments to accommodate with the specific situations in host countries.
Dry Soup Mixes and Canned Soups
In case of dry soup mixes and canned soups, it is more advisable to use multi - domestic strategy than global strategy. Multi-domestic strategy is think local and act local approach to strategy making where the same products can be sold under different brand names in different countries. There is significant differences in the consumers’ tastes, preferences and buying habits regarding the food items. For example: People in some countries like spicy food while some like boiled foods without ant spices. Similarly some like non-veg food items while some are inclined towards vegetarian items. So, to address the different food preferences of people living in different part, we need to produce and sell different products for different regions implying multi-domestic strategy.
Home Appliances
For home appliances like washing machines, ranges, ovens and refrigerators. It would be better to use global strategy. As mentioned earlier, global strategy emphasizes on gaining economies of scale by offering the same products or services in every market. However, we need to make certain minor adjustments and modifications can be made to address the issue regarding voltage, power consumption and power outlet of the host countries at lower cost (Creative Commons, 2012). As a producer of home appliances, we need to follow certain global standards while manufacturing the products and focus on building a global brand for which there is no better option than using global strategy.
Apparel and Footwear
As a company producing apparel and footwear, it is wise to use transnational strategy. It is think global and act local approach to strategy making that incorporates country-specific variation to accommodate cross- cultural variations and strive for benefits of standardization at the same time (Gamble, Petaraf, & Thompson, 2015). It allows the company to remain a global brand by considering the cultural and societal value of the host country. The quality of the product remains same in all country while the production, distribution and marketing strategy can be customized to address the sentiment of people of a particular country.
These strategies vary in terms of their emphasis on achieving efficiency around the world and addressing the needs of local people. The company needs to carefully look at the nature of their product, rules and regulations of host countries and consumption pattern of the people before decision on which strategy to use.
References
Creative Commons. (2012). Types of International Strategies. In Strategic Management: Evaluation and Execution. Retrieved from 2012books.lardbucket.org/books/str...
Gamble, J. E., Petaraf, M. A., & Thompson, A. A. (2015). Essentials of Strategic Management: The Quest for Competitive Advantage (Fourth ed.). New York: McGraw Hill Education.
Hitt, M. A., Xu, K., & Li, D. (2015). International Strategy: From Local to Global and Beyond. Journal of World Business . doi:10.1016/j.jwb.2015.08.016