IBM641-GLOBAL BUSINESS STRATEGY AZLIAHTUL BINTI THE TYPES OF STRATEGY – ADVANTAGES & DISADVANTAGES

THE TYPES OF STRATEGY  GLOBAL STRATEGY  INTERNATIONAL STRATEGY  MULTIDOMESTIC STRATEGY  TRANSNATIONAL STRATEGY STRATEGY “the action managers take to attain the goals of a firm” The purpose is to maximize or make profit by differentiate products, increase price: add value, features, quality and service. It also to achieve low cost. The key means is allocation of scarce resources attain goals.

GLOBAL STRATEGY ADVANTAGES  EXPLOIT EXPERIENCE CURVE EFFECTS  EXPLOIT LOCATION ECONOMIES DISADVANTAGES  LACK OF LOCAL RESPONSIVENESS INTERNATIONAL STRATEGY ADVANTAGES  TRANSFER CORE COMPETENCIES TO FOREIGN MARKETS DISADVANTAGES  LACK OF LOCAL RESPONSIVENESS  INABILITY TO REALIZE LOCATION ECONOMIES  FAILURE TO EXPLOIT EXPERIENCE CURVE EFFECTS

MULTIDOMESTIC STRATEGY ADVANTAGES  CUSTOMIZE PRODUCT OFFERINGS AND MARKETING IN ACCORDANCE WITH LOCAL RESPONSIVENESS DISADVANTAGES  INABILITY TO REALIZE LOCATION ECONOMIES  FAILURE TO EXPLOIT EXPERIENCE CURVE EFFECTS  FAILURE TO TRANSFER CORE COMPETENCIES TO FOREIGN MARKETS TRANSNATIONAL STRATEGY ADVANTAGES  EXPLOIT EXPERIENCE CURVE EFFECTS  EXPLOIT LOCATION ECONOMIES  CUSTOMIZE PRODUCT OFFERINGS AND MARKETING IN ACCORDANCE WITH LOCAL RESPONSIVENESS  REAP BENEFITS OF GLOBAL LEARNING DISADVANTAGES  DIFFICULT TO IMPLEMENT DUE TO ORGANIZATIONAL PROBLEMS