Types of Strategy While designing a strategy for a foreign environment, managers consider a numerous factors, ranging from local

culture to global trade theory. Generally, managers of multi-national enterprises make their choice from four basic strategies to guide how they will enter in the competition of the international environment. These four basic strategies are: a) International Strategy b) Multi Domestic Strategy c) Transnational Strategy d) Global Strategy Here we will discuss about the types of strategy. International Business The international strategy leverages a companys core competencies in foreign markets. It allows limited local customization. We can name McDonalds, BP, Google, Haier, as the notable example of the international firms. The international model relies on local subsidiaries in each country to operate business as instructed by headquarters. Still, ultimate control resides with managers at headquarters who reason they best know the basis and potential extensions of the companys core competencies.

Multi Domestic Strategy A multi domestic industry, sometimes called a locally responsive company, follows a strategy that allows each of its foreign country operations to act fairly independently. The companys subsidiaries in their responsive local markets have the authority to design, make and market products that directly respond to local customers preferences. Johnson & Johnson can be named as the company that follows this multi-domestic strategy to their great success. Firms which apply multi domestic strategy design a value chain that gives each countrys operations the direction to respond to its local culture legal-political, and economic environments.

Transnational Strategy The transnational strategy is arguably the most direct response to the growing globalization of business. It holds that todays environment consumers, industries and markets require on MNE to find ways to configure a value chain that exploits location economies, co-ordinate value activities to leverage core competencies effectively and ensure that the value chain deals directly with pressures for local responsiveness. The MNE applying a transnational strategy differentiates capabilities and contributions from country to country, finding ways to learn systematically from its various environments.

Global Strategies The company adopting a global strategy chooses to maximize integration. This decision spurs a company to make and market a standardized product, such as, package delivery, for a specific global market segment. The global strategy pushes companies to think in terms of creating products for a world market. Manufacturing them on a global scale in a few highly efficient plants and marketing them through a few focused distribution channels. Operationally, MNEs that adopt a global strategy aim to become the low-cost player in their industry. Failing to do so can lead to a weak competitive position against the firm that does.