and resources to remain competitive despite increased competition from local

And resources to remain competitive despite increased

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and resources to remain competitive despite increased competition from local manufacturers (Lecture 8). 3 Corporate Level International Strategies The three corporate level international strategies include multi-domestic strategy, global strategy and transnational. As demonstrated by the case study of Delta Faucet, the use of corporate-level international strategies offers many benefits but also presents challenges. For instance, the multi-domestic strategy decentralizes strategic operating decisions based on the strategic business unit (SBU) in each market so that products are tailored to local market needs and preferences. These variations focus on a single market as the case with the Delta Faucet operations in the Chinese market (Grigoriou, n.d). However, the strategy isolates a firm from global competitive forces as it establishes protected market positions. Secondly, global strategy allows a firm to standardize its products across different markets as the competitive advantage is created by the home office. The strategy focuses on benefits of scale economies and improves a firm’s global reporting standards. However, the strategy presents challenges since attempts to gain integration among the strategic business units leads to management complication. Further, the strategy is less responsive to market opportunities and provides fewer effective learning opportunities since there is pressure to conform to home office standards. Thirdly, the transnational strategy offers the benefits of both the multi-domestic and global strategies. Therefore, the strategy increases global efficiency and is responsive to local needs. Its advantages include flexibility in coordination, creation of a shared vision and individual commitment due to an integrated network. However, it is costly to implement and seeks firms to differentiate while at the same time customise products for all markets (Lecture 6).
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FINAL REVISION 6 Reference Grigoriou, N. (n.d). “Delta Faucet: Global Entrepreneurship in an Emerging Market” Monash College-China
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  • Fall '19
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