Companies engaged in global business are faced with challenges of either adopting a uniform strategy or an integrative strategy to gain competitive advantage. Both of these two approaches or strategies have potential of enhancing the competitive capacity of an enterprise in the international market. However, most organizations or multinational companies combine these two forms of strategies so as to strengthen their competitive capacity while reducing the risks associated by explicitly relying on one of the above strategies (Quester & Conduit, 1999).
An adaptive strategy is adopted where markets are well defined and a company is at a close range with its customers. This is usually adapted where production of goods and services are carried out in a foreign country or in the region where a company intends to carry out its business rather than its own country. To reduce costs, companies are opening subsidiaries in other countries thus making customer contact easier. However, where opening a subsidiary may be very costly, companies usually employ a uniform strategy where by goods and services are traded or offered in a standardized manner (Quelch & Deshpande, 2004).
Balancing the adaptive and standardized global strategies is vital for the success and survival of an organization. No strategy is best or can guarantee a company success in the global market and as such before embarking on a specific strategy, an in-depth analysis and assessment of the global market should be carried out. Different areas may require different strategies to be implemented to enhance competitiveness. Conclusion Competition in the international markets has led to the need for effective competitive strategies to be implemented by multinational companies.
One of the major challenges faced by multinational companies is the pressure to reduce operating costs while maintaining the international standards and competitiveness. The companies also have to comply with the stringent international business rules and regulations. Formulating an effective marketing strategy is thus vital in ensuring a company gains a competitive edge in this market. Another problem associated with globalization is that it has led to an influx of supplementary and complementary goods and services making differentiation in terms of products and services difficult.
While in the past product differentiation was the only strategy that was being used in ensuring competitiveness in the global market, dynamism in business environment and technology has led to a change in this trend. A business must come up with different competitive strategies in today’s global market for it to survive. No single strategy is viable in ensuring that a company gains competitive advantage. A company should thus aim at combining different strategies as situations and circumstances so as to gain a competitive edge.
Constant evaluation of the strategies should also be carried out to ensure that it is effective and essential. The best strategy is the one which reduces costs and also increases consumer satisfaction and loyalty. Reference: Fahy, J. (2001): The Role of Resources in Global Competition. ISBN 0415237114, Published by Routledge International Council of Chemical Associations (n. d): Global Product Strategy. Retrieved on 4th February 2009 from, http://www. iccadubai. org/dbfiles/Global%20Product%20Strategy%20Backgrounder%20Final%2001. 27. 06. pdf. (GPS) Kaynak, E.
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