This document discusses four global strategies: global standardization, localization, transnational, and international. Global standardization focuses on cost reductions through economies of scale and minimal customization. Localization emphasizes customization for local markets. Transnational strategies balance global coordination and local responsiveness. International strategies involve selling standardized domestic products internationally with minimal customization. The document provides examples of companies using these strategies like Intel pursuing global standardization in semiconductors.

1. By
Vyas Agastya
Yash Sharma
Zaid shaikh
Girish Mangani
Global strategies

2. Global Strategies

3. Global standardization Strategy
 The main focus of companies is to increase profits by
cost reductions that come from
 Economies of scale
 Localization is minimal.
 This means they are pursuing low-cost strategy on
a global scale
 They concentrate on few favorable locations
 They do not concentrate on customization, as it
involves shorter production s, which raises costs
 They use cost advantage to support aggressive
pricing in world markets

4. When to implement this strategy?
 When there are strong pressures for cost reductions
 When there is demand for local responsiveness is
minimal
 Usually these strategies are used when the products
serve universal needs.
Example: In semiconductor industry ,global standards
have emerged creating enormous demands for
standardized global products. Companies like Intel,
Texas Instruments, Motorola all pursue this strategy
*Although these kind of conditions are not always found,
where demands for local responsiveness remain high

5. Localization Strategy
Focuses on Local Market
Customization (Local
Preferences, Needs)
Low Cost Pressures
Good when there are
substantial difference
TV Channels, Food

7. TRANSNATIONAL STRATEGY
 An international business structure where a
company's global business activities are coordinated
via cooperation and interdependence between its
head office, operational divisions and internationally
located subsidiaries or retail outlets.
 A transnational strategy offers the cost reduction
benefits provided by a global strategy along with the
local responsiveness characteristic of localization
strategies.
 Gives two goals top priority:
 seek location advantages
 global platforms
 gain economic efficiencies from worldwide networks
 Transnational companies must also focus on

8. Example of Caterpillar
 Competition with low cost competitors forced to
look for greater cost economies.
 Variations in construction practices and
government regulations across countries forced
to respond to local demands.
 Redesigned its products to use many identical
components and invested in large scale
manufacturing facilities to realize scale
economies.
 Centralized manufacturing with assembly plant in
each global market to realize benefits of global
manufacturing with local responsiveness by
differentiating its product.

9. International Strategy
Domestic Products (Min.
Customization)
Low Cost Pressures
Local Responsiveness (low
pressures)