![]() Consequently, multidomestic firms often have a very decentralized and loosely coupled structure where subsidiaries worldwide are operating relatively autonomously and independent from the headquarter. In addition, they have little pressure for global integration. ![]() Global, Transnational, International and Multidomestic Strategy Multidomestic: Low Integration and High ResponsivenessĬompanies with a multidomestic strategy have as aim to meet the needs and requirements of the local markets worldwide by customizing and tailoring their products and services extensively. Together these two factors generate four types of strategies that internationally operating businesses can pursue: Multidomestic, Global, Transnational and International strategies.įigure 1: Bartlett and Ghoshal’s Typology of Multinational Companies: It seems that these strategic options are mutually exclusive, but there are companies trying to be both globally integrated and locally responsive as can be seen in some examples below. Business that are highly locally responsive have as extra objective to adapt products and services to specific local needs. Businesses that are highly globally integrated have the objective to reduce costs as much as possible by creating economies of scale through a more standarized product offering worldwide. Bartlett and Ghoshal clustered these businesses based on two criteria: global integration and local responsiveness. The aim of this article is to clearly define these different terms and see how they differ from each other, because they do differ! An often used framework to distinguish multiple forms of internationally operating businesses is the Bartlett & Ghoshal Matrix (1989). Consequently, many terms have been given to companies operating in multiple countries: multinationals, global businesses, transnational companies, international firms et cetera. Due to increasing globalisation the past decades, even smaller companies have been able to cross national borders and do business abroad.
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