Explain the distinct cost pressures, responsiveness pressures and other pressure

Question

Explain the distinct cost pressures, responsiveness pressures and other pressures leading to the distinct global, multidomestic and transnational orientations seen in different worldwide industries. Explain how these distinct orientations correlate to (a) strategic initiatives and (b) integration initiatives for firms in the respective industries.
Explain the distinct cost pressures, responsiveness pressures and other pressures leading to the distinct global, multidomestic and transnational orientations seen in different worldwide industries. Explain how these distinct orientations correlate to (a) strategic initiatives and (b) integration initiatives for firms in the respective industries.
Explain the distinct cost pressures, responsiveness pressures and other pressures leading to the distinct global, multidomestic and transnational orientations seen in different worldwide industries. Explain how these distinct orientations correlate to (a) strategic initiatives and (b) integration initiatives for firms in the respective industries.
Explain the distinct cost pressures, responsiveness pressures and other pressures leading to the distinct global, multidomestic and transnational orientations seen in different worldwide industries. Explain how these distinct orientations correlate to (a) strategic initiatives and (b) integration initiatives for firms in the respective industries.

Explanation / Answer

Answer - There are distinct pressures leading to distinct global, multidomestic and transnational orientation seen in different worldwide industries.

Multidomestic strartegy is extenstion of home replication strategy where each foreign market is taken as standalone market. Here each standalone market requires significant attention and international replication of home based strategies. If we see in Multidomestic strategy the pressure of responsiveness is high as there is doubt of how local strength and competency would work in outside market. The cost pressure is however on the low side as one is adopting local strategies which are home tested. This stategy is easy to implement but it may lead to foreign customer alienation.

Global standardardisation strategy would be would be complete opposite of localisation strategy. Here global accepted standards would be adopted as standard measures. In Global standardization strategy the pressure of cost effective is high. When you going for global accepted standards, the cost factor would be on higher side. However, the responsiveness pressure is on the the lower side. The advantage of this strategy is that it tries to leverage on low-cost advantage but the flip side is that there is too much of central control.

Transnational strategy is the mix of both multidomestic and global standardisation strategy. It tries to adopt the best of the both mentioned staregy and be both cost efficient and locally responsive. The big advantage of this strategy is that it cost efficient while being locally efiicient. The disadvantage of this strategy is that it is complex in its organisation and hence become difficult to implement.

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