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A successful global marketing strategy requires a thorough analysis of the various value chain activities, to bring a balance between activities to be performed at global and local levels. Achieving this balance is a challenging task and calls for a good understanding of customer requirements in each market in which the company operates. The article talks about different strategies to be adopted during each activity from selection of markets to enter, to management of distribution channels.
"The multinational corporation knows a lot about a great many countries and congenially adapts to supposed differences..... By contrast, the global corporation knows everything about one great thing. It knows about the absolute need to be competitive on a worldwide basis as well as nationally and seeks constantly to drive down prices by standardizing what it sells and how it operates. It treats the world as composed of a few standardized markets rather than many customized markets."
Transnational corporations operate around the world, in different markets, where customer requirements may vary. The temptation to customize for each market has to be tempered by the need to keep costs down through standardization. A truly global marketing strategy involves standardizing some elements of the marketing mix across the world, while customizing others. The correct approach is to identify and analyze the various value chain activities that make up the marketing function and decide which of these must be performed on a global basis and which localized.
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