Multinational Corporations to Help Explain the Strategies (Essay Sample)

Multinational Corporations to Help Explain the Strategies

Introduction
Internationalization Strategies
Multinational corporations utilize various strategies to expand the scope of operations in the world. Therefore, such a company has multiple operations especially in more than one country hence the name, Multinational Corporation (MNC). The largest MNCs firms are significant players within the global landscape. For example, America’s leading retailer Walmart global revenue sales are more substantial than the value of the whole economies of Saudi Arabia, Norway, and man more. In essence, for a corporation to establish such global dominance, it relies on internationalization approaches which enables global expansion CITATION Ayd21 \l 1033 (Ayden, et al., 2021). In particular, there are four significant strategies for global expansion such as multi-domestic, transnational, international, and global approaches.
Multi-Domestic Strategy
An organization that relies on this approach disregards cost or efficiency but relies on receptiveness to local constraints in the markets. For instance, world’s leading streaming giant Netflix is a prime example of a firm relying on multi-domestic approaches. The company has customized its content library based on requirements of various countries. Likewise, The H.J. Heinz food company in the United States has personalized some of its products to align with local requirements as seen in the case of India where it does not include garlic and onion on its products.
Global Strategy
A company that opts for this business approach substitutes responsiveness to local market requirements in place of focusing on reduced costs and improved efficiency. Therefore, some slight changes on products and services are vital in different markets but it particularly underlines the need to obtain low costs and economies of scale CITATION Mar17 \l 1033 (Marques, et al., 2017). For example, Microsoft provides similar software packages in various markets around the world but it fine-tunes to the local languages.