1.

Global Strategy (Standardization Strategy)

A firm using a global strategy sacrifices responsiveness to local requirements within
each of its markets in favor of emphasizing lower costs and better efficiency. They thereby
focus on achieving a low-cost strategy by leverage cost reductions that come from
experience curve effects and economies of scale.
They consider the global market as a unified market, so the enterprise produces and
supplies standardized, homogenous, and similar products, such as in electronic products,
steel, paper, pens industry or services industry such as parcel delivery... These businesses
assume that there is no difference between countries when it comes to the tastes and
preferences of customers, and if there is a difference, customers will still ignore it because
they have the conditions to buy products of good quality. Relatively good quality with a low
price.
Businesses implementing this strategy have global products, manufactured on a global
scale in a handful of efficient factory locations, they marketing the product through a few
centralized distribution channels.
Ex: This strategy is effective for firms whose product or service is largely hidden from
the customer’s view, such as silicon chip maker Intel.
Advantages: Exploit the experience curve (EC) effects and the economy of scale (ES)
Cost effectiveness
Disadvantages: Lack of local responsiveness