STRATEGIC

MANAGEMENT
FINAL
PERIOD
 GLOBAL
STRATEGIE
S
 TOPIC: GLOBAL STRATEGIES
After studying this lesson, you should be
able to:

 Define & Explain the concept of global

strategy
 Identify and discuss the various types
of global strategies

 Differentiate the three types of

international companies
Part I. What is Global Strategy?

A global strategy is one

that a company takes
when it wants to compete
and expand in the global
market.
 What is Global Strategy?
It is a strategy that business
pursues when they wish to
expand internationally. It
aims to increase the sales of
goods or services abroad.
Part III. Global Strategies
Types of Global Strategies
There are four types of strategies that internationally
operating businesses can pursue: 
1. Multidomestic strategy
2. Global strategy
3. Transnational strategy  
4. International strategy
Types of Global Strategies
Bartlett and Ghoshal clustered the businesses based on two
criteria: global integration and local responsiveness.

Businesses that are highly globally integrated have the

objective to reduce costs as much as possible by
creating economies of scale through a more standardized
product offering worldwide. Business that are highly
locally responsive have as extra objective to adapt
products and services to specific local needs. It seems that
these strategic options are mutually exclusive, but there are
companies trying to be both globally integrated and locally
responsive as can be seen in diagram.
 Multidomestic strategy
Companies with a multidomestic strategy
have an aim to meet the needs and
requirements of the local markets
worldwide by customizing and tailoring their
products and services extensively. In
addition, they have little pressure for global
integration.
Multidomestic strategy
7-Eleven is an example of a company using a
multidomestic strategy. It tailors the product
selection, payment methods, and marketing to
the values and regulations in each country
where it operates. For example, in Japan, 7-
Eleven allows customers to pay their utility bills
at the store.
Multidomestic strategy
Another great example of a company that
used this kind of strategy is
Nestlé. Nestlé uses a unique marketing and
sales approach for each of the markets in
which it operates. Furthermore, it adapts
its products to local tastes by offering
different products in different markets.
GROUP ACTIVITY
CONCEPT APPLICATION
 Drawback of Multidomestic
strategy
One of the primary disadvantages of multi-
domestic marketing is that it can be
expensive to execute. It takes time and
money to research new markets and gain
insight into the local needs and wants of
those consumers; and once those have been
figured out, it takes money to implement the
strategies.
Global strategy
This strategy is the complete opposite of a multidomestic
strategy.

A firm using a global strategy  sacrifices

responsiveness to local requirements
within each of its markets in favor of
emphasizing efficiency.
Global strategy
Some minor modifications to
products and services may be made
in various markets, but a global
strategy stresses the need to gain
economies of scale by offering
essentially the same products or
services in each market.
Global strategy
In this strategy, the company
offers a standardized product
worldwide and have the goal to
maximize efficiencies in order to
reduce costs as much as possible.
Global strategy
Microsoft, is an example of a
company using a global
strategy offers the same
software programs around the
world but adjusts the programs
to match local languages.
Global strategy
Other examples of a
companies using a global
strategy are the Pfizer, a
Pharmaceutical company
and the Intel, silicon
chip maker.
Transnational strategy  
A transnational strategy combines a
standardization strategy and a
multidomestic strategy. It is used when a
company faces significant cost pressure
from international competitors but must
also offer products that meet local
customer needs.
 Transnational strategy  
A transnational strategy is very
difficult to maintain because the
company needs to achieve
economies of scale through
standardization but also be
flexible to respond to local
conditions.
Transnational strategy  
A great
example of a
transnational
company is
Unilever.
Transnational strategy  
Ford Motor Company is adopting a transnational
strategy. Ford is producing a “world car” that has
many common platform elements that
accommodate a range of add-ons. That way Ford
benefits from the standardization of costly
elements that the consumer does not see but can
add custom elements to meet country laws, can
customize marketing to local standards, and can
provide unique products to meet local tastes.
 Transnational strategy  
The large fast-food chains such as
McDonald’s and KFC rely on the same
brand names and the same core menu items
around the world. These firms make some
concessions to local tastes too. In France,
for example, wine can be purchased at
McDonald’s. This approach makes sense
for McDonald’s because wine is a central
element of French diets.
International strategy  
This strategy is also often
referred to as an exporting
strategy. Products are produced in
the company’s home country and
send to customers all over the
world.
International strategy  
A standardization strategy is used when a
company treats the whole world as one
market with little meaningful variation.

This strategy has little need for

local adaption and global
integration.
In the Philippines

The country’s total export sales in

February 2022, amounting to USD
6.16 billion.
Electronic products commodity group
remained the highest on export sales
of the country. This was followed by
other manufactured goods and the
ignition wiring set and other wiring
sets used in vehicles, aircrafts and
ships.
Electronic Products
Majority of the semiconductor
and electronics firms in the
country are located around
Metro Manila, the
CALABARZON region
(Cavite, Laguna, Batangas,
Rizal, and Quezon provinces),
Northern and Central Luzon,
and Cebu.
Major Trading Partner of the Philippines
International strategy  
Apple and Cemex are examples of a company using the
international strategy.
 End of
Discussion