Basic+Overview+of+International+Strategies+Fall+09

Basic+Overview+of+International+Strategies+Fall+09 - Basic...

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Basic Overview of International Strategies Cost Pressures and Pressures for Local Responsiveness Firms that compete in the global marketplace typically face two types of competitive pressures (very high level): pressures for cost reductions pressures to be locally responsive Pressures for Cost Reduction International businesses often face pressures for cost reductions because of the competitive global market. Generally consumers are highly price sensitive across many goods, so choosing the right price is important. Pressures for Local Responsiveness Pressure for local responsiveness comes from differences in consumer tastes, infrastructure, distribution channels, or host government demands. Think back to the Ikea case from early in the semester. Choosing a Strategy There are four basic strategies to compete in the international environment: global standardization localization transnational International The global standardization strategy focuses on increasing profitability and profit growth by reaping the cost
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This note was uploaded on 12/31/2009 for the course BIZ 178 taught by Professor Meford during the Fall '09 term at Berkeley.

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Basic+Overview+of+International+Strategies+Fall+09 - Basic...

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