Global Strategy: Core Concepts

Your Global Game Plan: Core Strategy Checklist

Going global is more than just selling everywhere. It’s about a smart, unified approach.

1. WHY are you globalizing? (Drivers)

• New Markets? Lower Costs? Following competitors?
• Action: Clearly define your primary motivation.

2. The Global-Local Dilemma: How much to standardize vs. adapt?

• Pressure for Global Integration (Efficiency):
  • Are customer needs similar worldwide?
  • Are there big cost savings from global production/marketing?
• Pressure for Local Responsiveness (Adaptation):
  • Are customer needs/tastes very different locally? [ ] Do local governments demand adaptation?

3. Choose Your Strategy Type:

• Global: Standardized products, centralized decisions, cost-focused. (e.g., Intel)
• Multi-Domestic: Products/strategy customized for each local market. (e.g., Local food brands)
• Transnational: Both efficient AND locally responsive. (The ideal, but complex; e.g., P&G)
  • Action: Pick the one that best fits your industry’s pressures.

4. Configure Your Value Chain:

• Where should R&D be located? Manufacturing? Marketing?
• Action: Optimize locations for efficiency OR responsiveness.

Golden Rule: A good global strategy leverages global scale efficiencies while adapting to crucial local market differences. Don’t be “stuck in the middle.”