How do you define a global strategy?
The global strategies are the plan to target expansion on a global level that will expand the business on a very large scale. These types of strategies require that the company set their products that they offer across the international market and locations. It's very common for a firm that uses global strategies that they are a very centralized company that means that they have locations all most everywhere. An example of an global strategy would be for example would be the movie production teams that send out the movies to different theaters across the world because they send out the same movies but in different languages throughout the entire world.
Are there other international strategies, and how do they differ?
There are many different international strategies that are commonly used today like for example the multidomestic strategy that is very different from the global strategy because they offer different versions of the product that allows people that might not agree with the different ingredients in the products that they sale.
Transnational strategy is similar to global strategy because it relies on using the same type of menu like McDonalds will use the same menu all over the globe that displays the same items only difference from global strategy is that this strategy will display different items based upon what that are likes the most.
Identify a minimum of 3 possible countries and location options for globalization. Research each of these locations in the furniture industry, and document both the pros and cons of using these in global strategy.
Kuwait
Pros- In the furniture industry Kuwait would be a very good location to sell your fancy sofas because the main population is very rich.
Cons- The operations on a global strategy here will be the prices would have to rise to balance out the higher values that they Kuwaiti dollar has on the USA dollar.
USA
Pros-the advantage of selling furniture in the USA is that there is a market for many different types of furniture that the population will buy.
Cons- The down side of trying to sale furniture on a global strategy in mind with some of the population being very poor it will be hard to sell some items that the company is trying to offer.
Europe
Pros-One advantage that I have personally experienced with my travels to Europe is they have a strong taste for fancy furniture so operating with a global strategy in mind would be very easy to operate due to the fact that they are a very open to different styles of furniture.
Cons- the downside to operating a global strategy in Europe is that small pieces of furniture is mainly brought because of the normal person that lives there doesn't live in a very large style house like we are used to living in the USA because of the cost of living.
What country would you choose? What evidence can you provide in support of your choice?
The country of my choice would definitely be the United States of America because of the economy that is located here loves a wide variety of furniture. This type of environment can support the different types of furniture that the company will set their prices with the global strategy prices throughout the country.
What evidence might somebody else, who does not agree with you, provide to support his or her choice?
I would let them know that they can look at the sales that local furniture stores are receiving in their area that they live in that will show that a lot of resident that live in their area all buy furniture for their homes that they live. I would also ask them to ask any of their friends that live in the USA if they have furniture in their homes and I bet they all say that they have some kind of furniture in their homes.
What could you tell somebody else to show he or she is wrong?
I would basically tell them to look at the facts that in the USA it's traditional that even babies have their own beds. Arguing that furniture sales on a global strategy would work because the price and style could be the same no matter where the location of the store is located in the united states because everyone is familiar with buying items for the same price no matter the city or state that they reside.
References
Global strategy, retrieved on 2/15/2017, retrieved from https://www.globalnegotiator.com/international-trade/dictionary/global-strategy/
Types of international strategies, retrieved on 2/15/2017, retrieved from https://opentextbc.ca/strategicmanagement/chapter/types-of-international-strategies/
2-3 pages max
Mike, one of the marketing strategists on your team, stops at your office door wanting to talk. "We use fabrics that are made domestically; however, there are issues with using these same fabrics globally. There are laws and regulations that prevent us from shipping these fabrics to other countries. This is a huge concern. One of our primary selling points is the consistency of quality of our product."
You confirm Mike's concern, "That's an excellent point," you say. "Now you've just given yourself and our team more work for the presentation. I'm sure that will come up. One of the board members used to run a textile plant in China."
Mike nods his head in agreement. "I imagine textiles will not be the only resource concern," he says.
Consider the following in your response:
- Why should resources be a concern in a global strategy?
- What resources may be a concern in the country you selected?
- How will this impact the decision to move to the country that you selected?
- How will this impact your competitive strategy in your global market?