Introduction
Strategy is a crucial element of the plans and targets of every company. There needs to be a specific way to act to achieve a goal. Multinational corporations like Walmart or Kia have three approaches of international strategies to choose from transnational, multi-domestic, and global. Every approach is oriented toward building international efficiency by adapting to the local markets of countries. It is vital to choose the right direction for development and expansion.
Discussion
While a multi-domestic strategy accents local requirements, a global approach is an exact opposite that uses similar strategies in any country. A typical example of a global approach is Intel because they do not need to consider particular qualities of different markets. At the same time, channels like MTV edit their programs according to differences in culture. Transnational strategy is in the middle of these two parallels. These companies usually balance their approach by adjusting their services but seeking efficiency. For example, “Mcdonald’s has over thirty-seven thousand restaurants in the world adjusting to visitors in every country” (Usman, 2020, para. 1). The three possible directions for global expansion can be Canada, Japan, and Mexico. All of these countries are relatively close to the United States, and that means many advantages.
The transportation of goods or resources arrangement, new teams building, and expansion of production can be difficult questions if considering Europe or Asian countries. However, it can be harder in Canada because of the competition. It is known that “Canada exports around ninety-five percent of its furniture to the US, as furniture industry trends show” (Drah, 2022, para. 6). However, Mexico and Japan are not as serious about this market and have a fairly high GDP. Japan also has strong investments, while Mexico has an affordable workforce. Japan is the most attractive in terms of business because of its location, financial and cultural development, and high demand due to low competition in the market.
Conclusion
To conclude, the direction of globalization is a big and responsible step for any company in the world. The right decision can lay the foundation for permanent cooperation and building a strong business relationship. However, the wrong decision can cause problems in the local market that were in perfect order. It is crucial to choose the right approach for the company to move and develop.
References
Drah, H. (2022). Eighteen furniture industry statistics for Canada in 2022. Review Moose. Web.
Usman, S. (2020). Mcdonald’s & its transnational business strategy.Linkedin. Web.