Group 7

Globalization
Strategies
Globalization
Strategies
A globalization strategy is the
"blueprint" to expand into new
international markets. It will position
your company to reap the significant
benefits of global expansion, including
a larger customer base and talent pool,
access to new technologies and
suppliers, lower manufacturing costs,
and greater revenues and profits.
 As you develop your plans for global expansion,
consider these different approaches:
LOCAL RESPONSIVENESS

LOW HIGH

EXPORT/INTERNATIONAL MULTIDOMESTIC
GLOBAL INTEGRATION

LOW

STRATEGY STRATEGY

GLOBAL/ TRANSNATIONAL
HIGH

STANDARDIZATION STRATEGY
STRATEGY

Local responsiveness is the degree to which the company must

customize their products and methods to meet conditions in other
countries. Global integration is the degree to which the company is
able to use the same products and methods in other countries.
Export/International Strategy

An international strategy involves exporting

products. Using an international strategy can
allow you to work with foreign suppliers and
sell to customers around the world while
keeping your physical premises within your
home country. Typically, international
strategies still focus mainly on the
company's home market while doing some
business overseas.
EXAMPLE: VICTORIA'S SECRET, RED BULL
Global/Standardization Strategy

With a global strategy, companies offer

the same products and services across
all of their markets with minimal
changes. They are focused on creating
efficiencies that will lower costs and
allow them to compete on pricing rather
than tailoring their offerings to meet local
requirements.
EXAMPLE: COCA COLA, DUNKIN DONUTS
Multidomestic Strategy

A multidomestic strategy is the opposite

of a global strategy. Multidomestic
companies focus on meeting the specific
needs and preferences of local
customers with highly tailored products
or services, marketing materials,
strategy, and customer service.
EXAMPLE: MC DONALD'S, 7-ELEVEN
Transnational Strategy

A transnational strategy blends elements of

global and multidomestic strategies.
Transnational companies aim to be highly
responsive to the needs and preferences of
local markets while also reaping the
benefits of global integration. Transnational
organizations typically have a headquarters
that coordinates operations and works
collaboratively with its foreign subsidiaries.
EXAMPLE: COCA COLA, MC DONALD'S
 REGIONAL STRATEGY

REGIONAL the regional

STRATEGIES strategy, in which
the multinational
VS. adapts activities
GLOBAL and operations to
regional
STRATEGIES requirements.
 GLOBAL STRATEGY

REGIONAL the global strategy,

STRATEGIES in which all
operations and
VS. activities are
GLOBAL managed fairly
similarly worldwide.
STRATEGIES
Why do Multinational Corporations
need a Global Strategy?

Developing a global business strategy is

crucial because it increases sales and
resources, lowers cost, lets companies take
advantage of economies of scale, diversifies
risk, and increases flexibility.
Key factors that drives growth in the
International Trade

ECONOMIES OF SCALE

TECHNOLOGICAL ADVANCEMENT

COMPETITION

DEMAND

MARKET OPPORTUNITY
Concept of developing an effective
international trade strategy

International trade is the backbone of a strong

global economy. Having international trading
partners helps open a country’s businesses to
new markets, including U.S. companies
looking to take their business global. In fact,
U.S. exports accounted for about 11% of the
country’s GDP in 2023 as of Q3, and the
International Trade Association (ITA) indicates
that as of 2021, 9 million domestic jobs were
supported by U.S. exports.
Concept of developing an effective
international trade strategy

HAVE A STRONG PRODUCT OFFERING

BE SURE THERE’S A MARKET OPPORTUNITY

WORK OUT SUPPLY CHAIN LOGISTICS

COMPLY WITH INTERNATIONAL LAW

FORM STRATEGIC PARTNERSHIPS

LEVERAGE GOVERNMENT RESOURCES

HIRE THE RIGHT TALENT

GLOBAL STRATEGY DEVELOPMENT

According to Keegan, an effective

international trade strategy is composed of the
following five elements:
(1) environmental analysis,
(2) global strategic planning,
(3) organizational infrastructure,
(4) implementation, and
(5) performance measurement
The goal of the exercise is to develop “world-
class” international trade.
Global Strategy Development
- External Environment
ENVIRONMENTAL
- Organizational Strengths and Weaknesses
ANALYSIS
- Stakeholder Expectations

- Marketing Objectives
GLOBAL STRATEGIC PLANNING
- Marketplace Selection

- Centralized
ORGANIZATIONAL STRUCTURE
- Decentralized

- Organizational
ORGANIZATIONAL STRUCTURE
Commitment

PERFORMANCE MEASUREMENT

- Feedback
- Metrics
thank you.
Group Reporters:
Albino, Andrei Lloyd
Cañizares, Kristine
Dela Cruz, Ernesto III
Evangelista, Angelo Franco
Nilo, Patrisha Anne
Pacut, Kent Edzel