One of the key considerations, when looking at global strategies is the state of the global economy. There has been much debate as to whether globalisation consists of one single global market. It is necessary to think whether a uniform global strategy is one, which is 100% uniform and standardised, or just its key elements.
It must acknowledge that companies that operate in overseas markets do so in order to expand their businesses and reach as well as stave off competition. "Even businesses whose focus has traditionally been on domestic markets are finding they must compete across borders not just to prosper but also to survive". (Kanso and Nelson, 2002, p.87)
Regarding terminology, it is important to acknowledge that different academics may use the same terminology for different types of companies; confusion can arise with different companies & markets, which interpret slightly differently depending on the author.
An organisation's global strategy(s) is dependent upon where the competitive advantage(s) for the product(s) or service(s) lies. This links win with Thompson, Strickland and Gamble (2007, p227) belief that there are four strategic issues relevant to competing across national boundaries. Issues are, whether to customise a company is offering in each different country to the taste of products. Implement the basic competitor strategy in all countries or fit them to specific markets and conditions depending on competition circumstances. Locate company's production facility(s), distribution, and customer service operation in order to gain greatest location advantages, and lastly share company's resource, capabilities in different country, to ensure competitive advantage. These are the factors to consider developing a global strategy.
When considering uniform versus localised strategy is the transferability of a product's/service's/company's competitive advantage(s), means identifying the factors behind the competitive advantage. This can be location specific such as low cost labour, the quality of infrastructure, or technological, or brand name or a company's internal resources and capabilities.
Empirical evidence suggests that it is usually easy to recreate technological, brand name and most other organisational capability advantages in a new international location, given enough time.
Uniform strategy, standardisation, and national adaptation
In adapting a uniform global strategy, there are many associated cost savings and potential benefits. One of the key concepts of a uniform strategy is standardisation and the ability to standardise not only products but also to transfer other competitive advantages.
Theodore Levitt was a renowned famous supporter of standardisation and one uniform global market. Standardisation can be an easy and quick success as products/services stay the same. Many argue that it is important to have some sort of standardisation of a product when entering a new international market in order to have an existing competitive advantage, but there is much debate whether this applies in all, some, or few circumstances.
Theodore Levitt believed that organisations that operate and compete on only a national basis are vulnerable to attack from companies that treat the world as a single global market. His main argument surrounds scales of economies and companies producing standardised products (at a