Individual Project

Discussion Board

The term global strategy can be defined as the plans taken by a company when it is has set objectives to both compete and expand its activities in the global market. In other words, the strategy was taken up when businesses intend to expand their business internationally. Unlike other international expansion strategies such as the transnational strategy find the middle ground when it comes to multi-domestic and global strategies (Doyle, 2015). The multi-domestic strategy mainly focuses on local requirements that the company has to offer within each international market. Global strategy opposes that of multi-domestic for various reasons and among the main one is economies of scale. A global strategy will offer more to the company as no specialization will be needed. The company will be able to offer similar products and services to all its outlets internationally (Doyle, 2015).

The best region for any form of globalization in Southeast Asia, with countries such as India, China, and Malaysia offering the best opportunities for globalization. There are numerous factors that made the selection of these countries possible among the first is the government support for international companies (Leimgruber, 2018). Secondly Cheap labor thereby reducing the expenses of the company. Finally, these regions are situated in areas whereby the natural material for furniture is easily available. Though these may seem like advantages, it is also coupled with disadvantages. First, various government officials are becoming concerned with the rate of cultural homogenization (Leimgruber, 2018). Secondly, with e-commerce platforms becoming an international trend, competition is extremely steep with local companies in the countries identified posing financial and consumer threats.

The best country for the globalization strategy is China, not only does it have the needed natural resources for furniture but also has the workforce at a cheap price making it more conducive (Yang, Lu, & Jiang, 2017). Moreover, the government has in place tariffs on furniture that make it easier to buy or export furniture in large quantities from Chinese or multi-national companies. However, if someone else is to support another country it would be Malaysia as the nation does not only have the natural material for furniture but is regarded as among the top ten exporters of furniture globally (Yang, Lu, & Jiang, 2017). For this reason, the country already has a positive reputation regarding furniture. Nevertheless, if the company is to apply its global strategy it has to benchmark its legal, internal, departmental structure and resourcing aspects (Leimgruber, 2018). They have deemed the most critical factors of the company that can determine its success or failure.

References

Doyle, G. (2015). Brands in international and multi-platform expansion strategies: Economic and management issues. In Handbook of Media Branding (pp. 53-64). Springer, Cham.

Leimgruber, W. (2018). Between global and local: marginality and marginal regions in the context of globalization and deregulation. Routledge.

Yang, J. Y., Lu, J., & Jiang, R. (2017). Too slow or too fast? Speed of FDI expansions, industry globalization, and firm performance. Long Range Planning, 50(1), 74-92.