0710

Problem

A global strategy begins with a unique competitive position that offers a clear competitive advantage. What steps can a global competitor take to ensure that the strategy is implemented in a consistent way in countries around the world?

Step-by-step solution

Show all steps

100% (1 rating) for this solution

Step 1/1

Global strategy searches for competitive advantage with different choices in strategy. The company’s competitive position in one country gives a better position in other countries as well. It is important to have an integrated global strategy and in order to set that following steps have to be followed.

1. Construct a different competitive position – The firm should plan a global business and product line which is totally unique from its competitors. The pricing of the product be less than the competitors and give a different value to the product. The product should satisfy the customer’s requirements.

2 Stress on a fixed positioning strategy - The Company should have a long term objective to have a unique positioning. The firm should offer customers choice of products where the firm can capture more customers.

3 A clear home base needs to be established - The firm must establish a home base, where the technology, strategy can be developed and maintained.

4. Develop leverage product line at different countries- The product line has to be set in a home base in a country which has the best location advantage. The country should lead the selling of the product line to satisfy the customer.

5. Other activities need to be dispersed- The raw materials, and other parts that are used to make the products need to be purchased from a cost effective location. Certain activities can be done from the nearby market area; this can offer products to customers according to their preferences. The products that need innovation of technology can be done in countries which are developed and have good facilities.

6. Co-ordinate and integrate activities – It is important to coordinate the different activities happening in different locations or countries. Proper information system needs to be developed to coordinate. There should be personal relationship among managers in different locations. Ideas and suggestions need to be transferred among the managers.

All these would benefit a firm to build a successful global strategy. A well developed global strategy of a firm would enable the company do be a role model among its competitors.