1.

Transnational Strategy
A firm using a transnational strategy seeks a balanced mixture between a multi-domestic
strategy and a global strategy or in another way, the balance between lower costs and
efficiency with adjustment to local preferences within various countries.
From the point of view of implementing a transnational strategy, today's environment is
the generations of consumers, industries, and markets that are closely linked and interact
with each other. This environment requires international businesses to develop methods that
enable their value chain to both exploiting the benefits of location and national differences,
ensuring the adaptability and localization of products while also performing core
competencies of the enterprise.
When implementing a transnational strategy, businesses go into the nature of the
globalization process to continuously learn, grow and evolve. Businesses develop new,
innovative and effective skills from anywhere in their global network, then using these new
skills to further develop core competencies of their business, and then share and spread
those innovations across the global network. This requires a combination of top-down and
bottom-up flow of information and ideas in the management system.
Ex: P&G, Unilever, …
Advantages: Exploit the experience curve (EC) effects and the economy of scale (ES).4
Cost-effectiveness.
Customize products and services follow the actual need of the market.
Develop the global learning system.
Disadvantages: High cost.
Require a good - structuring organization.