For a product such as mobile phones, it would be better to undertake transitional strategy of thinking globally and acting locally. Taking an example of Xiaomi phones, we see that they have outsourced their manufacturing and distribution in India and Brazil. In the past four year since its entry into the Indian market in 2014 with strategic alliance of Foxconn, they have been able to gain 33% of the market in India. Indian market is considered to be among the top 3 largest mobile markets and so far Xiaomi in such little time has been able to initiate 6 manufacturing companies in India. "Xiaomi now accounts for over 30% of India’s smartphone sales, according to industry estimates. At the end of last year, it broke Samsung’s (SSNLF) six-year dominance of the country’s fast-growing market (Iyengar, 2018).” Thus this strategy has worked for Xiaomi in India.
For a product such as soup mixes and canned soup it would be better to use multi-domestic strategy over global strategy as people preference and cultural factor is the deciding point in its acceptance. Since multi-domestic strategy is focused in customizing products to offer specific market condition and buyer preference in the host country and also involving local managers who know more about the domestic market in strategy formulation (Gamble, Peteraf, & Thompson Jr, 2015) it would be more customer centric. In comparison global strategy mandates same product in all the countries. For example in India and Nepal, where culturally fresh ingredients are preferred to make food as compared to the west where preserved and canned food are accepted. Therefore to enter into the market here it would be best to choose the multi-domestic strategy.
Large home appliances are depicted and categorized as per their brand and so therefore requires the stamp of excellence to be choses by the customers. For this a global strategy would be best suited. For example in Nepal LG is a company trusted by many customers. Chaudhari Group (CG) assemble LG products locally and also sells same products but in the name of CG at a cheaper price. Customers still do not have as much faith in CG as they do in LG. Even in my home we have products of LG such as TV, washing machine etc. even though we could get it in CG for a cheaper price.
Footwear and apparels are a little different and cannot be termed into general applicable strategy. In Nepal people have started to accept locally manufactured apparels and footwear such as KTM city and Goldstar. But it is still in its infancy and people would still prefer branded products such as Nike, Addidas, NewBalance etc. over local and Chinese products. Therefore I believe global strategy and transitional strategy both would work well in these products segments.
These are some ways in which strategies should be adopted for different products based on consumer perception. It is important to understand the cultural aspect and local people perception before undertaking any strategy.
References
Gamble, J. E., Peteraf, M. A., & Thompson Jr, A. A. (2015). Essentials of Strategic Management The quest for competitive management. NewYork: McGraw-Hill Education.
Iyengar, R. (2018, May 1). How China’s Xiaomi took India’s smartphone market by storm. CNN Business .
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For a product such as mobile phones, it would be better to undertake transitional strategy of thinking globally and acting locally. Taking an example of Xiaomi phones, we see that they have outsourced their manufacturing and distribution in India and Brazil. In the past four year since its entry into the Indian market in 2014 with strategic alliance of Foxconn, they have been able to gain 33% of the market in India. Indian market is considered to be among the top 3 largest mobile markets and so far Xiaomi in such little time has been able to initiate 6 manufacturing companies in India. "Xiaomi now accounts for over 30% of India’s smartphone sales, according to industry estimates. At the end of last year, it broke Samsung’s (SSNLF) six-year dominance of the country’s fast-growing market (Iyengar, 2018).” Thus this strategy has worked for Xiaomi in India.
For a product such as soup mixes and canned soup it would be better to use multi-domestic strategy over global strategy as people preference and cultural factor is the deciding point in its acceptance. Since multi-domestic strategy is focused in customizing products to offer specific market condition and buyer preference in the host country and also involving local managers who know more about the domestic market in strategy formulation (Gamble, Peteraf, & Thompson Jr, 2015) it would be more customer centric. In comparison global strategy mandates same product in all the countries. For example in India and Nepal, where culturally fresh ingredients are preferred to make food as compared to the west where preserved and canned food are accepted. Therefore to enter into the market here it would be best to choose the multi-domestic strategy.
Large home appliances are depicted and categorized as per their brand and so therefore requires the stamp of excellence to be choses by the customers. For this a global strategy would be best suited. For example in Nepal LG is a company trusted by many customers. Chaudhari Group (CG) assemble LG products locally and also sells same products but in the name of CG at a cheaper price. Customers still do not have as much faith in CG as they do in LG. Even in my home we have products of LG such as TV, washing machine etc. even though we could get it in CG for a cheaper price.
Footwear and apparels are a little different and cannot be termed into general applicable strategy. In Nepal people have started to accept locally manufactured apparels and footwear such as KTM city and Goldstar. But it is still in its infancy and people would still prefer branded products such as Nike, Addidas, NewBalance etc. over local and Chinese products. Therefore I believe global strategy and transitional strategy both would work well in these products segments.
These are some ways in which strategies should be adopted for different products based on consumer perception. It is important to understand the cultural aspect and local people perception before undertaking any strategy.
References
Gamble, J. E., Peteraf, M. A., & Thompson Jr, A. A. (2015). Essentials of Strategic Management The quest for competitive management. NewYork: McGraw-Hill Education.
Iyengar, R. (2018, May 1). How China’s Xiaomi took India’s smartphone market by storm. CNN Business .