Question

If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy, a transnational strategy, or a global strategy?

Answer 1

A global strategy would be appropriate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal.

Companies adopting cross-border strategies are seeking a middle ground between multilateral and global strategies. Such companies try to balance the desire for efficiency with the need to adapt to local tastes in different countries.

Unlike the Strategy, the Global Strategy is centralized and managed from headquarters, seeking to maximize global efficiency. With this strategy, the products are much more standardized than tailored to the local market.

Four major global strategies form the basis of the organizational structure of a global company. These are domestic exporters, multinationals, franchisors, and multinational corporations. Each of these strategies is pursued with a specific operational organizational structure

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