- Strategic Management - Process
- Strategic Management - Types
- Strategic Management - Introduction
- Strategic Management - Home
Strategic Leadership
The External Environment
- Mapping Strategic Groups
- Judging the Industry
- Analyzing the External Environment
- Organization & Environment
Organizational Resources
- Company Assets: SWOT Analysis
- Other Performance Measures
- The Value Chain
- Intellectual Property
- The Resource Based Theory
Business Level Strategies
Aiding Business Level Strategies
International Marketing Strategies
- International Markets - Competition
- International Strategies - Types
- Drivers of Success and Failure
- Pros & Cons
Cooperative Level Strategies
- Portfolio Planning
- Downsizing Strategies
- Diversification Strategies
- Vertical Integration Strategies
- Concentration Strategies
Strategy and Organizational Design
- Legal Forms of Business
- Organizational Control Systems
- Creating an Organizational Structure
- Organizational Structure
Strategic HR Management
Strategic Management Resources
- Strategic Management - Discussion
- Strategic Management - Resources
- Strategic Management - Quick Guide
Selected Reading
- Who is Who
- Computer Glossary
- HR Interview Questions
- Effective Resume Writing
- Questions and Answers
- UPSC IAS Exams Notes
International Strategies - Types
An international organization can use a number of business strategies, based on its situation. New organizations will face different challenges than organizations that are old. Therefore, the strategies they implement are often different from the ones of key competitors.
There are mainly four types of business strategies an organization may choose from.
Growth Strategy
A growth strategy refers to adding new products or finding and implementing new features to existing products. Sometimes, an organization may be compelled to modify or increase its product pne to fight with its competitors. Otherwise, customers may shift to a new technology of a competitive company. For example, mobile phone companies need to keep adding new features or discovering new technology. Those who do not keep up with consumer demand will go out of business soon.
A growth strategy can also be implemented by finding a new market for the company’s products. Sometimes, it can happen by accident. For example, a consumer soap manufacturer may discover that industrial workers prefer its products to others. Hence, apart from selpng the soap in retail stores, the company should ship the soap in larger containers for factory and plant workers.
Product Differentiation Strategy
Product differentiation strategy can give a competitive advantage to companies, such as superior quapty or service. For example, an air purifier manufacturer may differentiate from competitors with a superior engineering design. Product differentiation strategy is usually used to set oneself apart from key competitors. It is found that product differentiation strategy can also help a company build brand loyalty.
Price-Skimming Strategy
A price-skimming strategy refers to charging higher prices for a product in comparison to competitors, especially during the introductory phase. A company may use a price-skimming strategy to quickly derive its production and advertising costs. However, there must be something special about the product.
For example, a company may introduce a new type of solar panel. If the company is the only one that is selpng the product, customers may pay the higher price.
One disadvantage of this strategy is that it attracts competition relatively quickly. Enterprising inspaniduals who have technological knowledge may see the high profits the company is reaping and launch their own products.
Acquisition Strategy
An organization with enough capital may use an acquisition strategy for competitive advantage. Purchasing another company or one or more product pnes of another company is the major popcy in such a kind of strategy. For example, Facebook’s acquisition of WhatsApp is a part of Facebook’s acquisition and growth strategy.
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