Case Analysis International Strategy Options Assume you are in charge of developing the strategy for a multinational company selling products in some...

Case Analysis

International Strategy Options

Assume you are in charge of developing the strategy for a multinational company selling products in some 50 countries around the world. One issue you face is whether to employ a multidomestic strategy, a transnational, or a global strategy. Answer the questions provided in the scenarios to the right.

• 1.If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy, a transnational strategy, or a global strategy?

A transnational strategy would make better strategic sense since it would be difficult to employ essentially the same strategic theme in all country markets.

A global strategy would be appropriate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal.

A transnational strategy would be appropriate since the same strategic theme could be employed, but country-to-country customization is necessary to accommodate consumer preferences in mobile phone features.

A multidomestic strategy is called for since mobile phone features must be tailored to the specific market conditions and buyer preferences in each country market.

A global strategy makes best strategic sense since country-to-country customization to fit local market conditions is necessary.

2. If your company’s product is dry soup mixes and canned soups, would a multidomestic strategy seem to be more advisable than a transnational or global strategy?

Multidomestic as local market conditions preclude a uniform, coordinated worldwide strategic approach.

Transnational strategy since processed food companies compete in two or more countries simultaneously.

Global strategy since local managers need little latitude in decision-making.

A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary.

Multidomestic strategy since customer needs and preferences vary greatly in the soup industry.

• 3.If your company’s product is large home appliances such as washing machines, ranges, ovens, and refrigerators, would it seem to make more sense to pursue a multidomestic strategy, a transnational strategy, or a global strategy?

A multidomestic strategy is advised because of the need for manufacturers to utilize the same marketing approaches worldwide.

A global strategy would make more strategic sense because of the opportunities for economies of scale in appliance manufacturing and the operation of centralized distribution centers.

A multidomestic strategy is recommended because of significant country-to-country differences in customer preferences, buying habits, and government regulations in the large appliance industry.

A multidomestic strategy would fit the industry environment best since customer preferences and electrical standards vary from country to country.

A global strategy would be advised since buyer needs are universal across the world.

4.

If your company’s product is apparel and footwear, would a multidomestic strategy, a transnational strategy, or a global strategy seem to have more appeal?

A global strategy would be advised since buyer needs are universal across the world.

A global strategy would make more strategic sense because of the opportunities for economies of scale in apparel and footwear manufacturing and the operation of centralized distribution centers.

A multidomestic strategy is advised because of the need for manufacturers to utilize the same marketing approaches worldwide.

A multidomestic strategy would fit the industry environment best since customer preferences and style preferences vary from country to country.

A transnational strategy is preferred since apparel and footwear items can reflect global fashion trends while being customized as needed because of country-to-country differences in customer