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Global Strategy

What's the definition?

Firms that pursue a Global Strategy are faced with great pressures from cost reductions but with weak pressure for local responsiveness.

Therefore, it allows these firms to sell a standardized product worldwide. However, fixed costs (capital equipment) are substantial. Nevertheless, these firms are able to take advantage of scale economies & experience curve effects, because it is able to mass-produce a standard product which can be exported (providing that demand is greater than the costs involved).







The infomation above is licensed under the GNU Free Documentation License and is derived from The Free Encyclopedia.com


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