As large companies continue to grow, they extend their global reach by utilizing different international strategies. Abraham (2012) noted that introducing products to new countries requires a business to follow a specific an approach in a bid to woe the local market to utilize the goods or services provided thus enhancing a successful business campaign. Examples of two strategies that a business could either employ in a market include the domestic or the transnational strategy. Corporations have an essential responsibility in ensuring that they determine which strategy best fits their business needs.
The multi-domestic strategy ensures that a company fits its products in any local market it ventures in. The products or services provided by the company are tailored to meet the demands of the domestic environment. It, therefore, takes into account characteristics such as food preferences, religious practices, and other features that define a locality. The strategy is vital especially when the business feels that it would be better received by the customers (Verbeke, 2013). It also avoids the prospects of a corporation being labeled that it only serves foreign interests. However, critics assert that it sacrifices efficiency at the expense of emphasizing local requirements for its markets.
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On the contrary, a transnational company sells multiple of its products across many countries by maintaining a uniform set of characteristics across all its products. It does not change specific attributes to fit in a particular locality as seen in multi-domestic strategy. As such, Verbeke (2013) asserted that the product does not change with regards to the preferences of the local customers. The way a product is sold in Morocco is exactly the same way it will be sold in the United States. The use of transnational strategy could prove vital especially when emphasizing efficiency and quality. It could mostly be critical in a market that values standards and certain international protocols.
References
Abraham, S. C. (2012). Strategic management for organizations [Electronic version]. Retrieved from: https://ashford.content .
Verbeke, A. (2013). International business strategy . Cambridge University Press.
