Types of International Strategies Learning Objectives. Understand what a multidomestic strategy involves and be able to offer an example. Understand what a global strategy involves and be able to offer an example. Understand what a transnational strategy involves and be able to offer an example.
There are three main international strategies available: (1) multidomestic, (2) global, and (3) transnational (Figure 7.10 "International Strategy"). Each strategy involves a different approach to trying to build efficiency across nations and trying to be responsiveness to variation in customer preferences and market conditions across nations.
Move material, people, ideas across national boundaries Economies of scale Cross-cultural learning Use existing domestic model globally Franchise, join ventures, subsidiaries FOR YOUR ATTENTION TRANSNATIONAL STRATEGY FOUR INTERNATIONAL OPERATIONS STRATEGIES Standardized product
Together these two factors generate four types of strategies that internationally operating businesses can pursue: Multidomestic, Global, Transnational and International strategies. Figure 1: Bartlett and Ghoshal’s Typology of Multinational Companies: Global, Transnational, International and Multidomestic Strategy
So looking at those four you have international strategy which is . with fairly low pressures to lower costs and low pressures for local adaptation. If the pressure to adapt locally is higher, you're going to look at a multidomestic strategy. On the other hand, if you have high pressures to achieve lower cost, ...
International Strategy: The parent company deploys innovations and allocation of resources rapidly through foreign direct investment in different nations. The firm can maintain a differentiation strategy under this. Transnational Strategy: Under this multinational, global and international strategies are rationally combined.
• Identify sources of competitive advantage in international strategy, through both global sourcing and exploitation of local factors. • Distinguish between four main types of international strategy.
‘Global Strategy’ is a shortened term that covers three areas: global, multinational and international strategies. Essentially, these three areas refer to those strategies designed to enable an organisation to achieve its objective of international expansion.
Bartlett & Ghoshal Model of International Strategy The two "pressures" or forces on firms wanting to compete in international markets, which determine the four grids in the box above are: Force for local responsiveness
the benefits and risks for these four strategies. Also, on your own I would ask you to . ... But here, let's cover the benefits and risk. So the international strategy, some of the benefits are you get to leverage your . core competence, you get economies of scale. It's not very costly to implement because you're not changing very much.