Question

Are international strategies always just a special case of diversification strategies that a firm might pursue? What, if anything, is different between international strategies and diversification strategies? Answer in 300 words and provide resources used.

Answer 1

International strategies is well known for the drivers of globalization and dual pressures which also have high global efficiency that creates standardization and there are also global responses which is helpful in creating high values and to reach the level of competition. Firms or industry uses this strategy to increase their profits outside the local market and also to yield new opportunities. This strategy creates a competitive edge in managing the resources and expanding the products for profits.

Diversification strategy is basically used in the firm to grow and to utilize more in the resources and capabilities. The strategy also helps in the core business and through the new product development. Diversification strategy helps in getting the opportunities to achieve the economies of scale and economies of scope.

In the above paragraphs I have been discussed similarities and differences.

Thus this strategy also creates opportunities for product expansion and is able to expand the business worldwide. This strategy is also helpful in creating value or wealth of the organization and also the production increases. Hence it creates the values of the shareholder too and become very helpful in controlling the performance of the business. Further an total experience and an extra ordinary performance which form success and build high skills and competency. Therefore, this strategy is helpful in generating high profits to the organization.

No, international strategies is always not a special case of diversification strategies that a firm might pursue because international strategies are used for international markets outside the domestic market.