Strategy illustration Strategy theory

Developing a global strategy

Today we live in a global economy in which the time taken for people to move between continents has been significantly reduced and in which Internet and other connections make instant connections possible. The business response of large business organisations has to recognise that they now operate in a global market place and to develop appropriate strategies. A global strategy is an organisational plan that takes into account these new global realities.

For example, in food manufacture companies like Nestle, Kellogg's, and Cadbury Schweppes they have developed global distribution and marketing networks, based on powerbrands i.e. market leading brands that are recognisable in nearly every country in the world.

Key aspects of global strategy include:

1. Treating the global market as the domestic market.

2. Creating a global marketing mix, which at the same time recognises regional and national differences, such as differences in language and tastes.

3. Creating global production and distribution systems, e.g. superfactories covering major areas of the world.

4. Concentrating on powerbrands - the most successful brands and products. Because the global market is so large there are substantial benefits to be gained from economies of large scale production, marketing and distribution. Rather than producing thousands of different products it makes sense to narrow down the range to a much smaller number in order to support these brands across the globe.

PEST analysis

Creating a global strategy involves first carrying out an environmental analysis of political, economic, social, and technological trends that are relevant to operating on a global scale. An organisations mission statement should then reflect this global focus.

A mission statement is a relatively short statement outlining the purpose of an organisation. It creates a direction for the organisation.

Having a clear set of objectives enables strategic planners within an organisation to develop the plans - strategies which enables the organisation to focus on global markets.

A key element of this global strategy will be a global marketing plan identifying an appropriate marketing mix, coupled with production and distribution plans.

Large airlines operate in competitive global markets. A key element of the global strategy is to decide on which countries and routes to concentrate activities. The airline will then build a strong global brand image so that it is instantly recognised and valued. Marketing activities will involve building up loyal customer support in targeted markets, and out-competing the competition through superior customer service, reliability and other customer benefits.

Supporting Documents

These downloads will help to put strategy theory into context using real world examples from real businesses.

Creating a winning marketing mix
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Find out how JD Sports employed strategy theory to prosper in the retail industry by downloading our premium case study.

Protecting the marketing mix through intellectual property rights
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Discover how Intellectual Property Office employed strategy theory to succeed in the public sector industry by downloading our premium case study.

Innovation in infant nutrition
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Find out how Cow & Gate used strategy theory to succeed in the food & drink industry by downloading our premium case study.

Entering a new market with a new product
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Learn how Experian applied strategy theory to prosper in the financial services industry by downloading our premium case study.

Meeting customers' needs in growth markets - online gaming
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Discover how BT used strategy theory to succeed in the telecommunications industry by downloading our premium case study.