Business
When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational.
• Assess the advantages and disadvantages of each strategy and evaluate how to build a competitive advantage. (you may use notes on textbook)
¢Select a specific organization in a chosen industry or sector and provide examples.
When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational.
Multi-domestic,
The firm views itself as operating within the context of numerous independent subsidiaries each of which concentrates on its own domestic locality and market.
The advantages are the following:
innovation from local R&D
Entrepreneurial spirit
Products tailored to individual countries
High quality due to backward integration
However, challenges include
High costs due to tailored products and duplication across countries
The innovation from the local R&D groups resulted in products that were R&D driven instead of market driven.
Decentralized control meant that national buy-in was required before introducing a product - time to market was slow.
Phillips is an example of a company that followed a multi-domestic strategy (Quick MBA Global Strategic Management).
Global,
The firm views the world as a single global marketplace. In turn, it focuses on developing...
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