Strategies Essay Samples
MNCs operate in different countries with each country having its own competitive dynamics and are thus plagued on how to compete internationally. The major complexity of MNCs is achieving an optimal balance between local flexibility and global efficiency. As a result the strategies of multinational managers can respond to these global-dilemma complexities by either adopting a global solution or responding locally. A global integration solution is where a MNC coordinates its value chains across countries with similar competitive dynamics so as to reap benefits like synergy and increased efficacy. Local responsiveness on the other hand is a strategy that involves being flexible in meeting the individual needs of the MNCs buyers as per the local dynamics.
An international strategy on the other hand is a compromise approach where the sale of products by a MNC across different countries uses similar marketing techniques. Major operations like manufacturing and R & D are centralized in the MNCs home countries while marketing or productions are decentralized. Another compromise between local responsiveness and global integration is the regional strategy. In this strategy, the company manages operations like marketing, production and sourcing of raw materials to a particular region. This is an approach used by MNCs that endeavor to reap both the benefits of local responsiveness and global integration by blending the approaches of multi-domestic, transnational and international strategies.
Abhishek, G. (2014). Multinational Strategies in Emerging Economies. International Journal of Advances in Management and Economics, 39-45.
Cullen, J., & Parboteeah, P. K. (2013 ). Multinational Management . Boston : Cengage Learning .