InBus

Global-, Transnational-, International-, Localization

• It is a low responsiveness / low cost pressure strategy
• Products from domestic market-->sell internationally with min. local customization
• For niche markets
• MNC: Ethnocentric-->focus on values, processes & resources of domestic company and replicate
• Critical elements of value chain stay at home (R&D, procurment & production)
• Local marketing and sales under tight control of HQ
• To similar markets

• high responsiveness / low cost pressure
• Customizing goods/services for local markets
• MNC: Ploycentric-->focus on values and interests of local culture
• Value chain-->flexible organized to meet the needs of the local markets
• Critical elements of value chain (R&D, production, procurement, marketing) are located in the local markets
• minimizing political & exchange rate risks
• greater prestige through local elements

• low responsiveness / high cost pressure
• no/min. differences in consumers preferences
• world=one single integrated market
• MNC: geocentric-->focuses on global values & universal needs
• Cirtical parts of value chain are located at HQ/key locations
• Goal: max. efficiency & intergration worldwide & better quality through standardization

• World seen as a portfolio of regional integrated markets = consumer preferences region to region
• MNC: Regiocentric-->georgraphics markets and global network of operations, knowledge transfer
• Manufactering in few key locations
• Benefitinh form both global integration & local responsiveness

1. International Division: If sales are low (beginning of internationalization) Gives centralized control and ist easy to integrate in structure but could be hard to coordinate
    

If regional markets strongly differ and foreign sales are high.
Suited for mulitdomestic strategies and eliminates costy transportation (import of overseas products)
Large overhead and lack of global orientation

EG: Nestle F&B

If integration and cost pressures are high and pressure for local responsiveness are low
Tight centralized  control & coordination, focused global strategy with functional expertise

Difficult to coordinate production & marketin areas and slow reaction to changing envirmonets

E.G: BP