Question

Discuss the six types of worldwide strategies (local, regional, global, etc.). What are the two major factors that change when comparing these strategies (product standardization, etc.)? with real world example

Answer 1

Ans: Multinational companies, which are companies that function in different countries around the world have to implement worldwide strategies in order to have a guide for all their business relations in those countries. The types of worldwide strategies are listed below:

• Multi-domestic strategy: A multi-domestic strategy involves the sacrifice of efficiency in order to emphasize the ability of the company to respond to the local needs and requirements in all the countries where they operate.
• Global strategy: This strategy involves the sacrifice of the response to the local needs and requirements in all their operating markets in order to emphasize efficiency. Although minor changes can be made to products and services, a global strategy is focused on gaining economies of scale, because the same goods or services are offered in all their operating markets.
• Transnational strategy: A transnational strategy is aimed at finding a compromise between a multi-domestic strategy and a global strategy. This is achieved by balancing the need for efficiency and the attempt to adjust to the local needs in all their operating countries.
• Local strategy: This strategy is aimed at fulfilling the needs of a particular area or nation. All goods and services that are made to suit the preferences of a certain location
• Regional strategy: This strategy is aimed at outlining the importance of geographic proximity, cultural, administrative, and economic factors in all their operating countries.
• Home-based strategy: This strategy involves the manufacture of all goods at a home base location before distribution to all operating countries.

Factors that affect global strategies

The following factors are the major factors that affect global strategies:

• Product standardization: This is a major factor that affects global strategies, it involves the acceptance of goods or services by the target audience for a business to be successful in any country, it has to be accepted by the target audience.
• Adaptation: Every company faces the hurdle of adapting to the culture, preferences and market structure of every company, in order to thrive.

Real world example

A good example of a company that effectively implements marketing strategies is coca-cola, the company is one of the widest and most popular multinational companies in the world.