A global strategy refers to the plans an organization has developed to target growth beyond its borders. It is a shortened term that covers three areas – global areas, multinational and international strategies. It is one that a company takes when it wants to compete and expand in the global market.
Implications of the three definitions within the global strategy:
- International strategy
The organization’s objectives relate primarily to the home market.
- Multinational strategy
The organization is involved in a number of markets beyond its home country.
- Global strategy
The organization treats the world as largely one market and one source of supply with little local variation.
In developing a global strategy it is useful to distinguish between three forms of international expansion that arise from a company’s resources, capabilities and current international position. If the company is still focused it’s on its home markets, then its strangles outside its strategies outside its home markets can be seen as international. Specifically, it aims to increase the sales of goods or services abroad. It helps companies grow from being an international company to a global company.