Question

Compare and contrast the four different types of International Strategies; Transnational, International, Localization, and Global Standardization. Include in your analysis an

example of a firm that would take on that strategy and why.

Answer 1

Ans-

Comparison of four different types of International Strategies:-

1) *Transnational stretegy-*
•When any organisation or a company decides to expand its business beyond boundaries of the nation is known as Transnational strategy.
• It takes the benefits of both domestic and international markets for expansion of business.
• Because of this, many brands, companies become popular in international market, but its strategy quite different from international, multinational and global business models.
•It creates more job opportunities for countries.
• E.g- Unilever, McDonald etc. which does business in more countries and by creating more income opportunity for the people , strengthens the economy.

2) *International strategy-*
• This strategy concentrates more on profitability approach,and they are independently operated by individually designed plans and actions, rather than following Government rules.
• E.g- U S steel company operates in different countries through branches and only concentrates in making high profits.

3) *Localisation strategy-*
•In this stretegy, only focus is given for domestic or local customer behaviour,purchasing habits, culture of country in which it is operated.
•It doesn't takes much risk of foreign customers as their products are mostly suitable only for domestic levels and this only satisfies the condition of local market levels
•E.g- Micosoft company

4) *Global standardization -*
• This stretegy of standard marketing is used for one country by any business or a company is used successfully to different nations with different cultures.
• Through this strategy, consumer awareness to a particular brand is achieved and this strategy reduces some costs and increases savings.
• E.g- Wall Mart