Discuss the characteristics of international, multidomestic, global, and transnational strategies. Include situations and a specific example in which each strategy would be most appropriate.
International strategy: companies make international strategies when they aim to target an international market for their products and services. Companies may franchise their business process to other owners in the local market or may have their own presence in the local market in the form of overseas offices to control their operations in the host country.
Multidomestic strategy: In this type of strategy the company might be ready to lose some of its influence on its subsidiaries in the foreign country. These subsidiaries might be allowed to function more independently and make their own operational decisions.
Global Strategy: This strategy is in action when the company decides the international market as on segment of consumers. For example in case of Coca Cola or Pepsi Cola, the whole world can be treated as one market segment.
Transnational Strategy: this is a vibrant strategy in which a company develops a strategy based on the experience of its subsidiaries in the international market. This strategy is an integration of the experience of the subsidiaries.