Multinational companies use globalization strategy, from a global perspective, rationally arrange limited resources, seize global opportunities, make global choices and deployments, and determine global strategic goals. Decision-makers are not limited by nations and countries, and consider the optimal allocation of resources on a global scale to achieve the best long-term overall benefits: in other words, it is an overall long-term strategy formulated by multinational companies for long-term survival and development in the ever-changing international business environment. Instead of considering a country's market and resources in isolation. The global strategy requires obtaining the greatest economic benefits on the basis of many countries, rather than haggling over the losses of one place in international business activities. From a historical perspective, global strategy is the product of the great development stage of multinational corporations.
The main reasons for the globalization of multinational corporations are: (1) the promotion of free trade. The reduction of tariffs and the establishment of regional trade groups have accelerated the process of globalization. (2) Financial integration and capital market opening. Global financial services and capital markets have promoted many enterprises to integrate their business activities on a global scale. (3) The progress of communication technology. The progress of technology makes communication simple and cheap, and the use of large-scale technology greatly enhances the company's international operation ability. (4) General customer needs. Customer demand is increasingly showing an international trend. For example, the popularity of sports makes basketball and rugby match set off an upsurge in Japan and Europe, which increases the interest of different people in the same sporting goods.
(A) the advantages and disadvantages of globalization strategy
1, the advantage of global strategy is that it can concentrate on establishing the company's unified competitive advantage:
(1) You can arrange your own production and operation facilities in the most favorable countries, either centralized or decentralized, and have a clear understanding of your own strategy.
Action is unified and coordinated.
(2) The activities of different countries can be linked, and the achievements of technology development and management innovation can be delivered in time.
Making full use of the company's core competitiveness and choosing the place that is most conducive to challenging competitors will facilitate the company to establish a lasting competitive advantage.
2. Disadvantages of global strategy: it is difficult to adapt to the characteristics of each host country and the different situations of each country.
3. Several aspects that should be paid attention to in the process of enterprise internationalization.
(1) The relationship between enterprises has the duality of competition and cooperation. The global economy is open.
Yes, all enterprises are a link in the economic chain. Therefore, enterprises should participate in the economic chain construction of the whole industry, be good at discovering each other's advantages, make full use of each other's resources, cooperate and develop with each other, and achieve win-win or multi-win.
(2) Realize several internationalization. ① Internationalization of ideas, only by participating in global competition can we win the development space of enterprises and further improve their overall quality and competitiveness; (2) Internationalization of production, seeking production bases around the world, reducing the production and transportation costs of enterprises, making products more suitable for local market demand and bypassing barriers to better enter overseas markets; ③ Internationalization of R&D. Now many enterprises have established R&D centers overseas, so that their products can be ahead of their competitors. (4) Capital internationalization can provide backing for enterprise internationalization and guarantee the global capital operation mechanism. (5) Internationalization of talents. In the final analysis, the competition of enterprises is the competition of talents, and talents are more important than ever. "Internationalization of talents" is reflected in the internationalization of talent composition and talent activity space.
(3) Integrate local resource culture and realize the localization strategy of enterprises. To realize the internationalization of enterprises, we must rely on enterprises.
At the same time, it promotes the localization process of the industry, and makes the brand of the enterprise gradually become a localized brand through "integrating people", "integrating wealth" and "integrating culture" in the local area. Under the concept of the enterprise's own overall brand, the brand has also integrated the localization characteristics and won the favor of local consumers.