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Global Company's Global International Strategy

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Nowadays everyone seems to be talking about the global market. Bilateral and the regional trade and investment patterns has been continuing dominating the global. The center of gravity of global competition is currently shifting to the East, with China and India getting on the top of the list while Russia and Brazil, the other two BRIC countries, are not being left far behind too. Mostly companies have their own reasons to consider going global such as to increase their growth, efficiency, and knowledge. They also go global in order to meet customer needs and to become more competitive. Global companies are those that have a global market presence, supply-chain infrastructure, capital base, and corporate mind-set. The global market is not an …show more content…

The international business offers the possibility of exploiting three resources of the competitive advantage, unavailable for the national companies: global efficiencies, the multinational flexibility and worldwide learning process (Lovas and Ghoshal, 2000, pp. 875-896). According to Laura Diaconu, in order to reach equilibrium, the multinationals often adopts one of the four alternative strategies: the national, multidomestic, transnational or global strategy. International strategy will be adopted by companies that aim to leverage their core competencies by expanding into foreign markets. The international strategy has low local responsiveness and also low concern about cost reduction. This is because they had entered the international market where the products or services are usually standardized and customer will be willing to pay for it. In the other hand, multidomestic strategy usually will have the unique physical and features that differentiate them in the international markets. For multidomestic strategy, it has high local responsiveness but has low concern about cost reduction. This is because they are …show more content…

Therefore, it allows these firms to sell a standardized product worldwide. Global strategies require firms to tightly coordinate their product and pricing strategies across international markets and locations, and therefore firms that pursue a global strategy are typically highly centralized. Global strategy involves thinking in an integrated way about all aspects of a business-its suppliers, production sites, markets, and competition. It involves assessing every product or service from the perspective of both domestic and international market

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Hennes and Mauritz (H&M) is Sweden based global company in the clothing industry. H&M has over 2600 stores in 43 different countries. H&M is known for their stylish or quality merchandise and its affordable prices. H&M has the aim and goal to provide quality fashion at the best and affordable prices. H&M also has the goal to provide good knowledge and product with good quality of well design, fashion, and textile (Matos, 2012).

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