Module 2: SLP Marketing And Strategy Types Of International

Module 2 Slpmarketing And Strategytypes Of International Strategiesr

Research and find an example of three multinational corporations (MNC) that each use one of the three international strategies: Multidomestic, Transnational, and Global. Explain techniques used in multidomestic strategy (¾–1 page), analyze the MNC’s use of this strategy, and discuss the pros and cons of the strategy. Explain techniques used in transnational strategy (¾–1 page), analyze the second MNC’s use of this strategy, and discuss the pros and cons of the strategy. Explain techniques used in global strategy (¾–1 page), analyze the final MNC’s use of this strategy, and discuss the pros and cons of the strategy. Use articles from the Trident Online Library’s full-text databases like Academic Search Complete, Business Source Complete, or ProQuest Central. Do not use quotations. Cite and reference sources in APA format. Write in third person, avoiding "I," "we," and "you." Use the attached APA-formatted template (BUS401 SLP2) to create your submission, which should include a cover page, a 2- to 3-page paper with APA citations, and a references page.

Paper For Above instruction

The strategic orientations that multinational corporations (MNCs) adopt profoundly influence their operations, competitive advantage, and adaptation to local markets. Among the main international strategies are the multidomestic, transnational, and global strategies, each representing a different approach to balancing global efficiency and local responsiveness. This paper explores each of these strategies through real-world examples of MNCs, analyzing techniques employed, advantages, and disadvantages.

Multidomestic Strategy

The multidomestic strategy emphasizes high local responsiveness, allowing subsidiaries in various countries to tailor products and marketing strategies to local preferences and cultural nuances. An example of an MNC employing this strategy is Unilever, which operates with a decentralized approach, giving regional managers autonomy to adapt products and campaigns according to local tastes. Techniques used include localized marketing campaigns, product modifications grounded in cultural preferences, and autonomous decision-making at regional levels. This decentralization allows for greater cultural sensitivity and market fit, boosting consumer acceptance. However, the strategy entails higher costs due to duplication of efforts in R&D, marketing, and operational processes, and can create challenges in maintaining brand consistency globally. The main advantage of this approach is its ability to meet diverse consumer needs effectively, fostering customer loyalty, while the primary disadvantage involves increased operational complexity and expenses (Ricks & Maros, 2020).

Transnational Strategy

The transnational strategy aims to combine global efficiency with local responsiveness, seeking a balance between standardization and adaptation. An example is Toyota, which produces standardized vehicles globally while also customizing certain features for regional preferences, such as engine types or safety features. Techniques used include knowledge sharing across subsidiaries, flexible organizational structures, and integrated supply chains that allow for local adaptation without sacrificing efficiency. This strategy enables firms to leverage global economies of scale while catering to specific market demands. The advantages include increased competitiveness through innovation, cost efficiencies, and local market relevance. However, challenges involve complex coordination, greater managerial overhead, and the difficulty of aligning diverse local strategies with global objectives (Bartlett & Ghoshal, 1989). Managing transnational operations requires sophisticated organizational mechanisms to foster knowledge exchange and ensure strategic alignment.

Global Strategy

The global strategy is characterized by standardization and integration across markets, emphasizing maximum efficiency and uniform branding globally. Apple Inc. exemplifies this approach by offering largely standardized products worldwide, like iPhones and MacBooks, with limited region-specific adaptations. Techniques employed include centralized R&D, uniform marketing campaigns, and a standardized supply chain. This approach allows for significant economies of scale, streamlined operations, and a consistent brand image worldwide. The primary advantage of a global strategy is cost reduction through standardized processes and global brand recognition, which can lead to competitive advantage. Nevertheless, it faces criticism for potential insensitivity to local markets, reducing relevance to specific consumer tastes and cultural differences. This can also risk alienating regional consumers who seek products and services aligned with their local context (Prahalad & Doz, 1987). Still, when executed effectively, the global strategy offers powerful scalability and brand coherence.

Conclusion

Each international strategy presents distinct techniques, benefits, and challenges. Multidomestic strategies prioritize local responsiveness at higher costs, transnational strategies strive for a balance fostering innovation and efficiency but with complexity, and global strategies optimize for scale and consistency at the potential expense of local relevance. Successful MNCs often adapt their strategic approach based on their industry, target markets, and corporate goals, recognizing that flexibility and strategic alignment are key in the dynamic global environment.

References

• Bartlett, C. A., & Ghoshal, S. (1989). Managing Across Borders: The Transnational Solution. Harvard Business School Press.
• Prahalad, C. K., & Doz, Y. L. (1987). The multinational mission. Sloan Management Review, 29(2), 15-24.
• Ricks, D. A., & Maros, A. (2020). International Business Strategy. Routledge.
• Ghemawat, P. (2007). Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter. Harvard Business Review Press.
• Yip, G. S. (1989). Global strategy... in a world of nations? Sloan Management Review, 31(1), 43-54.
• Bartlett, C. A., & Ghoshal, S. (2000). Going global: Lessons from late movers. Harvard Business Review, 78(2), 132-142.
• Contractor, F. J., Kumar, V., & Kundu, S. K. (2007). Nature of the relationship between international diversification and performance: The case of multinational enterprises. Journal of Management, 33(4), 501–519.
• Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61(3), 92–102.
• Hollensen, S. (2015). Global Marketing. Pearson.
• Ghoshal, S., & Bartlett, C. A. (1990). The multinational corporation as an inter-organizational network. Academy of Management Review, 15(4), 603-625.