Question

An apparel company is trying to decide which global strategy to implement as they expand. A low cost structure with a differentiated product specific to each of its geographic markets is important to them. They expect to also use many of their resources across a global network. Based on these preferences, which strategy should the company practice?

a. International strategy
b. Transnational strategy
c. Localization strategy
d. Globalization stand

Answer 1

b. Transnational strategy

Step-by-step explanation:

An apparel company is trying to decide which global strategy to implement as they expand. A low cost structure with a differentiated product specific to each of its geographic markets is important to them. They expect to also use many of their resources across a global network. Based on these preferences, the company should practice transnational strategy.

Answer 2

The answer is option B) The company should practice Transnational Strategy.

Step-by-step explanation:

An apparel company seeking to expand on a global scale with a low cost structure with a differentiated product specific to each of its geographic markets should use Transnational Strategy for the following reasons:

1. Transnationals have a major advantage over local businesses in that is large, well resourced, and can enter markets efficiently and effectively.
2. They can assess the demand for specific products within a market and simply out-competing local vendors by using efficiencies created over time.
3. Production, supply chain advantages and marketing makes transnationals more effective than local business with limited operating capital.
4. The ability to sell products at a lower price is possible due to spreading of costs.
5. Transnationals exploit labor and local resources to supply a global market.