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Global Strategies

A global strategy considers the interrelationships between country markets to create synergies, economies of scale, strategic flexibility, and opportunities to leverage international programs and production. This differs from a multi-domestic strategy where separate strategies are developed and implemented in different countries. Developing a global strategy requires addressing issues such as which countries to enter, the extent of product and brand standardization across countries, and how to manage brands globally. Strategic alliances can help companies enter new countries by providing access to markets, technology, and production capabilities. However, alliances may not always share the same values over time, which can lead to problems.

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107 views19 pages

Global Strategies

A global strategy considers the interrelationships between country markets to create synergies, economies of scale, strategic flexibility, and opportunities to leverage international programs and production. This differs from a multi-domestic strategy where separate strategies are developed and implemented in different countries. Developing a global strategy requires addressing issues such as which countries to enter, the extent of product and brand standardization across countries, and how to manage brands globally. Strategic alliances can help companies enter new countries by providing access to markets, technology, and production capabilities. However, alliances may not always share the same values over time, which can lead to problems.

Uploaded by

gipaworld
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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A global strategy is different from a multi domestic and multination strategies in which separate strategies are developed for

different countries and implemented automatically.

A global strategy ,in contrast represents a worldwide perspective in which the interrelationships between country markets are drawn on to create synergies ,economics of scale ,strategic flexibility and opportunities to leverage international programmes and production economics.

A global strategies requires addressing a set of issues that include the following. 1) Should the firm become global by entering new countries ? 2) What countries should be entered and in what sequence? 3) To what extent should products and service oferrings be standardized across countries

4) To what extent should the brand name and marketing activities be standardized across countries? 5)How should the brand be managed globally? 6)To what extent should strategic alliance be used to enter new countries?

Obtaining

Scale of Economics - Coca cola since 1950s has employed the same marketing strategy throughout the world.

Desirable Global Brand Association A global presence automatically symbolizes strengths ,staying power and the ability to generate competitive products Useable for durable products like car, computer Honda, Yamaha, Sony

Access to low cost labor or materials -raw materials ,R & D talents, assembly labour and component supply -components from china and South Korea ,raw materials from south America ,assemble in Mexico.

Access to National Investment Incentives - Special privileges to branches for global business firm.

Cross Subsidization - To use the resources accumulated in one part of the world to fight a competitive bottle in another. Dodge Trade Barrier - By locating plants and branches in host countries - - major markets of the world

Access to strategically Important markets:

Big markets ,cheep laborers ,raw materials ,technology Bangalore For computers- Silica valley South Africa for Diamond

Ted

Levitt's classic 1983 Harvard Business Review article the Globalization of the markets.

With the forces of communication ,transport and travel ,may lead to homogeneity of consumer tastes. Economics of simplicity and competitive advantage to standard products. Sacrifice of preference to obtain high quality at lower price .

Sacrifice of preference to obtain high quality at lower price . - Coca-Cola Pepsi same brand logomarketing strategies easy for travel product like Singapore Airline, Thai Airlines. -easy to manage but difficult to develop a clear ,well articulated brand identity and make it a driver of all brand building activities .

With the formulation of centralized strategies ,can not be same standard all over the world. -With the strategies of competitors, global standards can be compromiser.

Economics of scale and scope may not actually exists - the brand team may not be able to support a global brand in the absence of people ,inform and creativity - A Standardized Brand simply may not be fundamentally differences across the markets.
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An alliance with distributing outlet a brand name, a sales organization technology and R&D capability has key role in global strategy for the success of any organization.

A Kenichi Ohmae ,a Japanese management guru on globally strategic alliance has to say this Globalization mandates alliance makes them absolutely essential to strategy .Uncomfortable ,perhaps-but thats the way it is .like it or not, the simultaneous development that go under the name of alliance extent-necessary.

collaboration leveraging the strengths of two or more organization to achieve strategic goals a long term commitment. -Can be in the form of informal agreement to a formal written agreement for strategic alliance.

# # # # #

Generate scale of Economics-Tatas Nano Gain access to strategic market overcome Trade Barriers Access to Needed Technology Use Excess capacity (New market)

Strategic alliance may not always be with the same value with the change in value problems arise in their alliances.

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