Introduction:
Thompson , Strickland and Gamble (2005) have differentiated between two strategies
based on the type of competition ; Multicountry Strategy , and Global Strategy They
disused the suitability of each strategy as stated below:
“A multicountry strategy is appropriate for industries where multicountry competition
dominates and local responsiveness is essential. A global strategy works best in markets
that are globally competitive or beginning to globalize.”
So, for any successful business decision maker, he/she should be aware of those factors
that will affect his/her strategy.
I believe after reading the assigned texts that Global Strategy succeeds when products and
services requirements from country to country are similar and close. It is also suits global
or emerging markets, those markets in which global competition exists.
On the other hand, multicountry strategy works when local cultures and needs differ from
country to another, which in turn affects the products specifications. Those changing needs
demand for more customizable products and services.
Another very important point is the governmental regulations and trade barriers. Few years
ago , I was working in project with the Public Authority of Industry to establish an Enquiry
Unit as an obligation on Kuwait after signing the TBT agreement.
I also know from my career experience as industrial engineer in Egypt , that all
international products manufactured in Egypt , should contain 40% of the components
from local providers. This mandatory governmental regulation lead Car manufacturers to
change in design and specifications , in order to easily source these components from the
local market.
Global Strategy:
For those organizations that apply Global Strategy , they need to uniform and coordinate
strategic decisions globally. These firms usually work in industries , products , and services
that have high global demand. And they may compete local rivals as well as international
competitors.
Companies that chose to employ global strategy gain the advantage of distributing
business activities among the countries they operate in , in a way that enable them to
minimize costs and create a competitive advantage.
According to Thompson , Strickland and Gamble (2005), these companies can ” pursue
same basic competitive strategy worldwide (low-cost, differentiation , best-cost, focused
low-cost, focused differentiation) * with minimal responsiveness to local conditions.”
I believe this is a result of selling same products and services with no or minor changes in
specifications.
This also can help in employing a unified marketing strategy with minor changes driven by
local cultures.
These companies can also benefit from market surveys, customer feedback in order to
enhance the product and implement those modifications in other countries.
