Differences between International, Multidomestic, Global and

Transnational Strategies
International

Multidomestic

Global

Transnational

Scope and degree

of interaction with
operations outside
of the home
country

Importers/exporters,
licensors/licensees, no
investment outside of the
home country

Investment in other
countries but no coordinated
product offerings in each
country. More focused on
adapting their products and
services to each local
market

Have invested and

are present in many
countries. They
market their products
through the use of the
same coordinated
image/brand in all
markets. Generally
one corporate office.
Emphasis on volume,
cost management
and efficiency.

Complex organisations that

have invested in foreign
operations, have a central
corporate facility but give
decision making, R&D and
marketing powers to each
foreign market.

Configuration of
assets and
capabilities

Sources of core
competencies centralised,
others decentralised

Decentralised and nationally

self-sufficient

Centralised and
globally scaled

Dispersed, interdependent,
and specialised

Role of overseas
operations

Adapting and leveraging

parent company
competencies

Sensing and exploiting local

opportunities

Implementing parent
company strategies

Differentiated contributions by
national units to integrated
worldwide operations

Development and
diffusion of
knowledge

Knowledge developed at
the centre and transferred
to overseas units

Knowledge developed and

retained within each unit

Knowledge developed
and retained at the
centre

Knowledge developed jointly

and shared worldwide