Transnational strategy- internet transactions transnational inc. acquire, develop and deploy technical and business capabilities in the field of transactions on the internet and world wide web. The advent avails low cost and high speed for business and other individuals based on universal capability for instantaneous and low-cost communication with very high flows of information and a high degree of independence from external control.
Multi-domestic firms include general motor. The differentiation and cost leadership strategies seek competitive advantage in a range of market segments. The differentiation and cost focus strategies are adopted in a narrow industry. This strategy engrosses selecting one or more criteria used by buyers and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product that often reflects the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products. (Bartlett and Ghoshal, 1989)
Possible ways a firm can reduce the UNIT COST when it comes to the production of A global brand of baby food under a global strategy
The firm should use the most efficient means of transportation in which bulk transport must be considered. The company should use the cheapest material with quality material to produce the most nutritious product. Low cost will be achieved if the selection criteria of the material are well done.
A “Global” version of furniture
Product development determines product cost. Practice Concurrent Engineering with the early and active participation of manufacturing, purchasing, and vendors. The use of commercialization techniques will ensure low costs. Co-locating manufacturing engineers ensures the best teamwork If outsourcing, choose a local vendor which ensures early and active vendor participation in product development teams.
The company should offer an introduction of different enterprises to every country in order to minimize the transportation cost of the final products. Standard products can be built to order without forecast or inventory and specials can be mass-customized on-demand. Doubling labor productivity, cutting production throughput times, and reducing inventories as well as cutting errors and scrap correction reduces unit costs. (Bartlett and Ghoshal, 1989)
Suggestion on how QFD applies to make a global laptop computer
In making a global laptop computer, the quality function deployment applies in many ways. it involves translating decision criteria or critical-to-quality issues into a prioritized set of targets- institutions and individuals; choices- in quality and sizes, or improvement opportunities thus helping to produce better products with high service provision in an easier process. The QFD will also apply in choosing strategies required to be competitive enough. This will be incorporated during the time of choosing the design criteria.
It will support the manufacturer in acquiring the matrix. It will provide producers the opportunity to improve organizational responsiveness to the voice of the customer The QFD will be used to drive out the Critical to Quality issues. Having a complete set of prioritized critical technical objects will improve control limit – specification Limit relationships.. Knowledge of design criteria conflicts are found in the QFD correlation matrix – it provides may provide production teams with the opportunity to make large-scale reductions in product or service defects. (Bartlett and Ghoshal, 1989)
Multinational firms
Crown Cork and Seal and First Union Corporation: they use a low price strategy in their commodity distribution.
Reference
Barczak, G. (2003): Managing Global New Product Development Teams: Institute for Global Innovation Management Working Papers.
Bartlett, C. A. and S. Ghoshal, (1989): Managing across borders: The transnational solution. Cambridge, MA: Harvard Business School Press.
Charles, F. S and George B. (1964): A bibliography of international Business: Columbia University. N. Y.: Columbia University Press.
De George, R. (1995): Competing with Integrity in International Business: New York: Oxford University Press.