Global Strategy; pursue their immediate
Firms that pursue a Global Strategy are faced with great pressures from cost reductions but with weak pressure for local responsiveness.
Therefore, it allows these firms to sell a standardized product worldwide. However, fixed costs (capital equipment) are substantial. Nevertheless, these firms are able to take advantage of scale economies & experience curve effects, because it is able to mass-produce a standard product which can be exported (providing that demand is greater than the costs involved).
External links
- Global Strategic Management, QuickMBA
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