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Global Strategy, G4 (Eric, Andy, Abby, Andrea, Jenny, Chloe, Johnson), MNE…

- - - - e.g. China、India
- - - - using scale
      - deplouing common
    - - local customer preferences
      - host-country requirements
- - - - achieve both localization high responsiveness and low cost at the same time
        
        Combination of localization strategy with global strategy
        
        Matrix organization
        
        The benefit have to be high in order to support the extra cost of implementing
  - - - Maximize economic profits or NPV
        
        Economies of scale and location economies
        
        Pursuing a global division of labor
        
        reside at the lowest cost
        
        based on best-of-class capabilities
- - - - Consumers perceive them to be demestic companies
        
        often in consumer products or heavily regulated industries
- - - - early phase of
        internationlization
        
        No Product Differentiation
        
        No Low Cost Structure
- - - - Risk
  - - - Wide economies of scale
        
        Global division of labor based on lowest cost
        
        High production efficiency
        
        No local responsiveness
        
        Little product differentiation
        
        "Race to the bottom" as wages increase.
      - Transnational
        Strategy
        
        Wied economies of scale
        
        Attempts to combine benefits of localization and standardization strategies.
        
        Costly implement lead to higher failure rate.
        
        High risk or IP expropriation
        
        Some exchange-rate affect
    - - Little economies of scale.
        
        High risk of IP expropriation
        
        Business in multiple countries leads to high cost
- - - - Deere
        (Agricultural
        Machinery
        Companies)