Pest of Nissan

International Strategy ■ Create value by transferring valuable core competencies to foreign markets that competitors lack ■ Centralize product development functions at home ■ Establish manufacturing and marketing functions in local country but head office exercises tight control over it ■ Limit customization of product offering and market strategy – Strategy effective if firm faces weak pressures for local responsive and cost reductions
Multidomestic Strategy ■ Main aim is maximum local responsiveness ■ Customize product offering, market strategy including production, and R&D according to national conditions ■ Generally unable to realize value from experience curve effects and location economies ■ Possess high cost structure
Global Strategy ■ Focus is on achieving a low cost strategy by reaping cost reductions that come from experience curve effects and location economies ■ Production, marketing, and R&D concentrated in few favorable locations ■ Market standardized product to keep cost’s low ■ Highly standardised ■ Highly centralised ■ Global efficiency is key ■ Effective where strong pressures for cost reductions and low demand for local responsiveness – Semiconductor industry
Transnational Strategy ■ To meet competition firms aim to reduce costs, transfer core competencies while paying attention to pressures for local responsiveness ■ Global learning is key – Valuable skills can develop in any of the firm’s world wide operations – Transfer of knowledge from foreign subsidiary to home country and to other foreign subsidiaries ■ Transnational strategy difficult task due to contradictory demands placed on the organization ■ Characterised as a loose network of subsidiaries

Global market portfolio matrix
This matrix model helps managers at corporate level to consider a portfolio of businesses in different countries in terms of