Question

Discuss the four main strategic postures firms compete internationally utilize, and the competitive positions conducive to each.

Answer 1

The four main strategic postures when firms compete internationally utilize are ,Global standardization strategy which lays emphasis on increasing profit through cost reduction.which generally comes from economies of scale,and economies of location.Their main objective is low cost strategy on an international scale.The preference of firms is to standardise their product worldwide and not to customize their product to get maximum benefit.from economies of scale.Secondly is the localization strategy which aims at increasing profit through customizing the firms goods and services with an intention of catering to the tastes and preferences of people in national markets. Thirdly the transnational strategy which aims at low cost and to differentiate their product in the global market. Lastly it is the international strategy which aims at taking products produced domestically and selling them in international markets with less local customization.They sell products of universal needs and do not face much competition.Managers can increase profit by lowering cost,or by following strategies that add value to the product.