What is an international strategy? + 5 examples | Frills (2023)

What is your competitive advantage?

This is one of the pillars of a powerful trading strategy. For multinational companies, it is what sets your brand apart from others in increasingly competitive markets. Traditionally, this meant producing cheaper or more efficient goods.

However, in today's world dominated by e-commerce and software, your competitive advantage will likely come from your leadership, marketing and international strategy.

In this post, we look at the different types of global strategies companies can choose from, as well as the pros and cons of an international strategy, often called an export strategy.

See Smartling's definitive guide to global expansion

What is an international strategy?

Any company that ships worldwide or provides services to consumers or businesses in other countries is considered a global company. FORinternational strategyIt's often the first approach most companies take when expanding globally: exporting or importing goods and services while maintaining a headquarters or multiple offices in their home country.

Global expansion as a business does not have a one-size-fits-all approach. As companies grow and scale, they may choose to invest more in their target markets.

(Video) International Strategy

In fact, companies choose from a variety of models, including:

  • Transnational Strategy: Transnational corporations operate with headquarters or main office in one country that coordinate local offices in international markets. This organizational structure means there is an overall brand and operating center that guides overall decision-making and supply chain management, leveraging the power of scale. McDonald's, Nike and Coca-Cola use this model.
  • multidomestic strategy: when companies employ very different sales, marketing, and product strategies depending on the specific businesses they serve. Rather than one global brand, there are many smaller country-specific brands catering to local tastes and customers. Well-known wellness brands like Johnson and Johnson use this model.
  • global strategy: When companies set a global brand and make little or no changes in other markets. Tech giant Apple is a great example of this: the technology is the same everywhere (with a few minor changes to keyboards).

It's not often that companies choose a model for good. What may start out as an international strategy can become a transnational or multinational strategy.

What international trade strategies look like in practice

Any international business strategy balances both sides of a diagram:

  1. Global integration:How are centralized operations versus globally distributed operations
  2. local responsibility: How customized is a product or service to a local economy versus being completely standardized

What is an international strategy? + 5 examples | Frills (1)

An international strategy scores low on both global integration and local responsiveness because it is essentially an extension of a company's national strategy.

In this model, international companies operate with a central office or headquarters. Rather than using local subsidiaries or offices, an international company keeps its headquarters in one place, usually in the local market. This organizational structure means that there is a hub and a brand and little or no investment in infrastructure in other countries.

Choosing an international business strategy offers several advantages:

(Video) The Strategy of International Business (With Real World Examples) | International Business

  • A unified global brand that is instantly recognizable
  • More efficient processes and consolidated management with economy of scale
  • Cost reduction through centralization and streamlined processes
  • Easier product portfolio

However, there are some concessions that companies make when following an export-oriented strategy:

  • High import and export taxes and fees.
  • Supply Chain Management Coordination
  • Customer service, especially with time zones, languages, etc.
  • Increase demand and awareness
  • Localization and translation (Don't worry, we can help!)

Regardless of these challenges, an international strategy is by far the most popular among companies, particularly when adopting a strategy of their own.first steps towards globalization and international expansionfor different countries. If you're not sure how your products will react in different markets or just want to test them out, opting for the export model is the safest option.

The power of international marketing

One of the biggest challenges for international companies isIncrease demand and awareness in local markets.

As these companies are less immersed in local customs or languages, it can be difficult to interact with these consumers.

That's why the most successful international companies invest heavily in marketing rather than infrastructure so they can scale without having to be local to a foreign market. With a centralized model, the head office maintains tight control over the product and the brand, facilitating the dissemination of a consistent message in several countries.

As you expand, a strong localization strategy – ensuring your messages and marketing are the same across multiple markets, regardless of language – is what makes international marketing so powerful.

We'll dive into specific international business examples in a moment, but consider one of the best general examples of international marketing in action:regional and country-specific articles.

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There's a reason why French Champagne is the celebratory sparkling wine people turn to, although there are plenty of alternatives from other countries or regions. And why speed-obsessed car lovers only buy from Italian companies like Ferrari. Regardless of the brand, the idea that the best champagne or the fastest car can only come from one place will make the international business model work.

To expand globally in this way, you need to find a gap that doesn't already exist in this market and build trust that you are the only brand that can fill that gap.

Implement a solid international strategy with Smartling

The good news? While localization and translation may seem like the most daunting aspects of an international business strategy, they don't have to be.

Smartling offers a world-class translation software solution built for you, no matter how you want to grow your business. You can professionally translate and localize all your content across devices and platforms without sending a single email, tapping a button, or managing strings in spreadsheets... no matter how many markets you want to break into.

See what Smartling can do for you.https://www.smartling.com/software/

5 examples of international strategy

A successful international business model focuses on asingle point of operationexporting products and services all over the world.

While not all global companies look exactly the same, in practice this means that international companies must take a comprehensive and standardized approach to their exports and imports, even if their operations remain small.

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Here are five of these successful global brands:

  1. Must Chandon: LVMH's iconic Champagne is considered one of the best since 1842 and one of the most popular.in a US$700 million market, with a celebrity history from Napoleon to the Oscars. Each bottle is grown, produced and shipped in France on over 2,000 hectares of vineyards in 200 crus.

  2. Red Bull: Most Americans have no idea that Red Bull is an Austrian brand, not an American one. While their current business model is more transnational, they started out in 1987 as a small export manufacturer, handing out free samples to adrenaline junkies in the US and exporting from their offices in Europe. Now,leading energy drinkgenerates more than $2 billion in sales each year.

  3. Porsche: Cars use hundreds of parts from all over the world. But most of today's big car brands, even international ones like Toyota, GM or BMW, have factories in the United States, Mexico and Canada to serve North American customers. Luxury brands like Porsche may use parts from around the world, but they are still assembled in their ownflagship factories in Zuffenhausen and Leipzig, Germany.

  4. Geheimnis wins: The popular 2000s lingerie chain looks and feels the same no matter where in the world you shop for clothes: sizes, colors and styles. While their production is sourced from around the world, they are primarily based on an export model, opening stores in smaller locations such as malls and airports as a gateway.

  5. netflix: Streaming giant Netflix uses a strong translation strategy with subtitles in 62 languages ​​to scale its business without investing in local infrastructure. Over200 million subscribersWith 190 countries, there are plenty of local options to explore. Although the library of shows available in countries like India, Brazil or Japan may change due to licensing agreements, the most watched shows like House of Cards, Peaky Blinders, Black Mirror and others remain the same.

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