Using the Republic of Niger Based on your country of choice, develop scenarios w

Question

Using the Republic of Niger

Based on your country of choice, develop scenarios where firms may invest in your country using the following strategies: Global standardization strategy Localization strategy Transnational strategy International strategy For each strategy, develop one scenario where an international firm would desire to enter the market of your chosen country. Describe the products or services offered by each firm and why the strategy was chosen. Cultural, political, and legal factors should be taken into consideration, as well as any informal or formal trade barriers. Provide your answers in a 5- to 8-page Microsoft Word document. Support your responses with examples. Cite any sources in APA format.

Explanation / Answer

Let's start with defining all the strategies given the question.

1) Global standardization strategy

It means, using the same standard strategy globally. When the company has certain marketing strategic procedures and strategies, then the ability to use them globally without any change is called global standardization strategy.

2) Localization strategy

It means changing the strategies or procedures according to the local market. In other words, customised implementations according to the local markets or regions

3) Transnational strategy

Transnational strategy is similar to the localization strategy, where the strategies or implementations are customised according to the local markets. This is a much more complex strategy, where the company has a centralized location for coordination and units in different foreign locations, where in, an important function is assigned to each and every location. This strategy facilitates all the global business activities of the firm through coordination, cooperation and interdependence.

4) International Strategy

It means the strategy which involves all the commercial and business transactions that take place between two different entities of two different countries.

The country of choice i prefer to take is India. Scenarios for firms investment in India for all the above strategies - Lets take the existing firms as examples here.

1) Global Standardization strategy - As per its definition, the ability for any company to follow same set of rules or procedures internationally is global standardization strategy.

Lets take a scenario of Mc Donalds. Mc Donalds operate internationally, likewise they operate in India too. Mc Donalds uses same set of rules and procedures globally in all the countries where the company is operating. In India, mc Donalds offers veg, chicken and fish burgers. All the procedures that are involved in making a burger are same everywhere, where the company operates. Also, there is no change in the name and the logo of Mc Donalds in India. It is same as the original.

Nike is an other brand which is most commonly available in India. Nike follows Global standardization strategy in India, where all the strategies and procedures are common globally.

Coca-Cola is an other brand which is very commonly prevelent everywhere in India. Coca Cola also uses global standardization strategy in India.

2) Localization Strategy - As per the definition, Localization strategy means customizing according to the local market.

Lets take Mc. Donalds as an example again. Mc Donalds offers Beef in most of the countries. But in India, consuming beef is highly restricted. Hence, Mc Donalds, had to remove that option for the local market.

Similarly, when Nike realised that its Air logo resembles Allah in Arabic countries, it had to remove its shoes from the distribution.

In the similar lines, Coca Cola's diet coke is changed to light coke in Japan. Since, dieting is not very well regarded in Japan.

3) Transnational Strategy -

The best example for the transnational strategy is Unilever. Unilever has its presence globally. In india it is called HUL (Hindustan Unilever) Unilever's headquarters is in London UK. But, its presence is seen in almost 26 countries with more than 400 products available in its product line.

Unilever head quarters coordinates and cooperates with all the offices globally.

4) International Strategy

The best example for International strategy is Walmart. Walmart partnered with Reliance group in India. Walmart and Reliance are two different entities working from two different countries under partnership.

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