Global Strategy vs. Multicountry Strategy
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 product 's 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
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 product 's 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
References: Thompson A. A. , Strickland A. J. , Gamble J. E. (2005) , Crafting & Excuting Strategy : The Quest for Competitive Advantage , McGraw-Hill /Irwin