Definition of a Global Strategy
Global Strategy is a term often used to cover global, multinational and international strategies. These three areas are essentially designed to enable an organization to achieve its international expansion objectives (Lynch, 2012).
It is imperative to distinguish between three forms of international expansion that arise from a company's resources, capabilities and current international position In developing 'global strategy. If a company is solely focused on its home markets, then its strategies outside its domestic markets can be seen as international. However, its main strategic focus is still directed toward the home market (Lynch, 2012).
There are three main international strategies available: multidomestic, global, and transnational. A company which follows a multidomestic strategy adjusts its products to each country in which it is operating. Using this strategy, a company will tailor product features to the local domestic environment. Religious customs, different food preferences, and other characteristics that define the locality is taken into consideration. By following this strategy, companies have a better chance of ensuring a better reception of their products by local customers, versus something unusual produced by a foreign company (Hartman, 2012).
A global strategy is pursued by companies such as Apple, GE, and Sony and Gillette. Using this strategy, companies compete in all markets. They provide each market the product, strong centralized control, pinpoint customer wants and needs internationally, and identifying value added activities where the lowest cost can be achieved. When differences between customers in countries are small and competition is global a global strategy is effective.
Companies employing a transnational strategy sell their products all over the world. However, this strategy differs in the way each product is marketed in each country....