Generic Internationalization Strategies With Examples

There are four international strategies: international, multi-domestic, global, and transnational. The international strategy involves applying the approach that the company uses in its own country. This option is due to the success of activities in the domestic market and the lack of experience in considering other strategies. The most prominent example of such a strategy is Daimler-Benz. This German automotive company initially focused on the high-income class in Germany and has an excellent reputation in its domestic market.

The multi-domestic strategy implies a set of relatively independent subsidiaries; each of them serves a particular national market. In this case, the company has good opportunities to adapt its products, the marketing campaign, and methods of production of goods or services to maximize the satisfaction of consumers who differ in their preferences. A typical example of such a company is the Swiss Nestle, which has a decentralized structure and a broadly diversified product line adapted to the specific needs of consumers in different countries of the world.

A global strategy is typical for companies that perceive the entire world as a single market. Therefore, the emphasis is on the production and sale of standardized goods or services that meet the requirements of most consumers around the world. A good illustration of global companies is Boeing; it is one aircraft model, Boeing-737, for airlines from different countries and continents. Another example is mobile device manufacturers such as Apple, Samsung, and Nokia, producing one basic phone model and software for other national markets.

A transnational strategy combines the benefits of increasing efficiency through the globalization of operations and the benefits of delegating authority to the management of local subsidiaries. This task is solved by an informal approach to centralization or decentralization of powers and distribution of responsibility among the most efficient and flexible units. An example of a company using this strategy is Microsoft. Although the development of new software products is carried out in the United States, their sales are transferred to the localities to the corresponding foreign divisions. The latter are better informed about the national characteristics of various markets.

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