Different industries have different and specific orientations toward global, mul

Question

Different industries have different and specific orientations toward global, multidomestic and transnational perspectives. Explain the factors that lead to the pressures (cost, responsiveness, etc.) underlying the three perspectives. How do these pressures affect a firm’s international marketing and strategic initiatives? Different industries have different and specific orientations toward global, multidomestic and transnational perspectives. Explain the factors that lead to the pressures (cost, responsiveness, etc.) underlying the three perspectives. How do these pressures affect a firm’s international marketing and strategic initiatives?

Explanation / Answer

The Different industries have a different and specific orientation towards Global, Multidomestic and transnational perspectives, they have to adopt and execute their strategies according to the pertaining condition, they need to analyse and take the measure accordingly, this might differ from industry to industry. The company needs to look into the various aspects before deciding on the strategies, which would help them to adopt the strategies. For instance, food industries would need to cater according to the local culture or else it would not be accepted in the same way across the market, the company would have to adopt a multidomestic approach to get accepted by the local culture and customs. On a contrast to an airline industry, it has to be global a benchmark is set and they have to follow across the markets, even the food they serve, they have all varieties to chose from.

There are different factors which lead to pressure from the above said 3 perspectives, let us see in detail

1) Culture - The culture is one of the important factors, a company should see whether where it is conducting the business the perspective it if following is matching or else it would fail. Hence the businesses should adapt to the situation and only enter the market if they are compliant with the culture. For Eg - Pork is banned in the middle east, introducing bacon would be disrespecting Islamic law.

2) Cost - The cost is a factor which not only depends on the production but logistics and sales, the cost is another pressure which a business should take care of there would be different factors which would affect the cost. This could break or make the product in a market irrespective of all factors.

3)Local laws - these are the entry points of the business into a market, the product must be always according to the specification of local laws, these laws also change from time to time, these could lead in a sudden drop in sales, it can be due to restriction or taxes.

4) Responsiveness - The company should be responsive to all its customers need, this should be on all level, be it Global, multi-domestic or transnational, this will show how much a business cares about the customers.

The above-said pressures help companies to shape their strategic initiatives and marketing campaigns, they are able to decide which market to enter in and what strategy the firm needs to adopt in that respective market. For instance the company could decide acc to the culture that their product is culturally complaint or not by cost it could price the product rightly acc to the spending capacity and the perceived price of the product in the market, the local laws are the entry point, they would determine that the product is ok for sale in their market or not and the last responsiveness would help customers to judge, how much the company cares about its customers.

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