Pest of Nissan

Topics: Marketing, Porter generic strategies, Management Pages: 2 (354 words) Published: November 13, 2010
International Strategy
■ Create value by transferring valuable core competencies to foreign markets that competitors lack ■ Centralize product development functions at home
■ Establish manufacturing and marketing functions in local country but head office exercises tight control over it ■ Limit customization of product offering and market strategy – Strategy effective if firm faces weak pressures for local responsive and cost reductions Multidomestic Strategy

■ Main aim is maximum local responsiveness
■ Customize product offering, market strategy including production, and R&D according to national conditions ■ Generally unable to realize value from experience curve effects and location economies ■ Possess high cost structure

Global Strategy
■ Focus is on achieving a low cost strategy by reaping cost reductions that come from experience curve effects and location economies ■ Production, marketing, and R&D concentrated in few favorable locations ■ Market standardized product to keep cost’s low

■ Highly standardised
■ Highly centralised
■ Global efficiency is key
■ Effective where strong pressures for cost reductions and low demand for local responsiveness – Semiconductor industry
Transnational Strategy
■ To meet competition firms aim to reduce costs, transfer core competencies while paying attention to pressures for local responsiveness ■ Global learning is key
– Valuable skills can develop in any of the firm’s world wide operations – Transfer of knowledge from foreign subsidiary to home country and to other foreign subsidiaries ■ Transnational strategy difficult task due to contradictory demands placed on the organization ■ Characterised as a loose network of subsidiaries

Global market portfolio matrix
This matrix model helps managers at corporate level to consider a portfolio of businesses in different countries in terms of the country...
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