MGT350 CSU International Business Strategies

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Question Description

Option #2: Multinational Strategy

Assume you are in charge of developing the strategy for a multinational company selling products in some 50 countries around the world. One of the issues you face is whether to employ a multi-domestic, a transnational, or a global strategy.

In a three- to four-page paper, address the following:

  • Analyze which of these strategies would make more strategic sense to employ if your company’s product is mobile phones. Explain your answer.
  • Determine whether or not a multi-domestic strategy would be more advisable than a transnational or global strategy if your company’s product is dry soup mixes and canned soups. Explain your answer.
  • Analyze which strategy would it seem to make more sense to pursue if your company’s product is large home appliances, such as washing machines, ranges, ovens, and refrigerators: a multi-domestic strategy, a transnational

strategy or a global strategy. Explain your answer.

The length and formatting requirements include:

  • Three to four pages in length, not including cover and reference pages. Include a cover page, section headers, an introduction, a conclusion, and a reference page.
  • Formatted according to the CSU-Global Guide to Writing & APA (Links to an external site.)Links to an external site..
  • Cite a minimum of three sources, two of which should be academic peer-reviewed scholarly sources to support your positions, claims, and observations, in addition to your textbook. The CSU-Global library is a great place to find these resources.

Throughout this course, be sure to use the Business Management & Administration Research Guide in the CSU-Global Library: (Links to an external site.)Links to an external site.. Here you can:

  • Locate a variety of sources dealing with ethics, CSR, and business management.
  • Gather information specific to different aspects of business ethics.
  • Access writing and citing help.

Your paper should be three to four pages in length and conform to CSU-Global Guide to Writing and APA (Links to an external site.)Links to an external site.. Include at least three scholarly references in addition to the course textbook. The CSU-Global Library is a good place to find these references.

Tutor Answer

School: New York University



International Business Strategies
Institutional Affiliation




A company that manufactures smartphones locally and wishes to penetrate the global
market needs to adopt the global business strategy over the multi-domestic and transnational
strategies. The global strategy offers several advantages over the other two methods.
Smartphones are generally similar worldwide among different brands including Apple, Samsung,
Huawei, Xiaomi, or One plus. They are all characterized with features such as front and back
facing cameras, some use touch screens while others use traditional designs. Most manufacturers
share the same chipsets in their smartphones which are often provided by a single company. In
2018 all major Android smartphone brands used the Snapdragon 845 processor in one of their
smartphones, with only manufacturers such as Apple and Huawei using different chipsets.
Therefore, to penetrate and dominate the global smartphone market the strategy should
not be to tailor smartphones for each country or region. The multi-domestic strategy emphasizes
this strategy of tailoring products to match to local preferences but for a product such as a
smartphone, its use case universally is mostly similar. Smartphones are used to call, share data,
listen to music, and take pictures. No single country or locality has a different use case for a
smartphone and as such the best strategy to win a new market will be determined by other
factors. These factors include price, brand name, the purchasing power of citizens of a certain
country, connectivity rules of specific countries. In a country such as the United States where
certain carriers use different bands for their network connectivity may be the only considerations
new smartphone makers should worry about. Rather than waste components in smartphones in
other regions which lack these bands, a smartphone maker will choose to remove the bands from
these devices helping them cut down on costs.
A global strategy focuses more on achieving economies of scale through effective
manufacturing, marketing, and transportation (Morris, 2017). Therefore a company that wishes



to sell smartphones globally must ensure that their manufacturing process is super-efficient. This
efficiency will be the key determinant in the pricing strategy the company wishes to make in new
markets where existing players may already exist (Holt, Quelch, & Welcher, 2004). The
manufacturing process of smartphones can be conducted in Asian countries such as China where
labor is extremely cheap when compared to other countries in Europe or the United States. The
smartphone compa...

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