Global strategies

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)