- Global Strategy Example: Nike
Nike uses a global strategy by offering largely standardized products (e.g., Air Jordan sneakers, running apparel) across all global markets. It centralizes key decisions (design, marketing campaigns, supply chain management) at its headquarters in the U.S. to achieve maximum economies of scale and maintain a consistent global brand identity. Local adaptations are minimal and only for practical reasons (e.g., shoe size conversions). - Multidomestic Strategy Example: Nestlé
Nestlé is a classic example of a multidomestic strategy. It heavily customizes its products and marketing to fit local cultural preferences and tastes. For instance, Nestle's Nescafé coffee is formulated differently for different regions-sweet and creamy in China, strong and bitter in Europe, and with local flavors (e.g., cardamom) in the Middle East. Local subsidiaries have significant autonomy in product development and marketing decisions. - Transnational Strategy Example: Coca-Cola Coca-Cola employs a transnational strategy, balancing global integration and local responsiveness. Its core product (Coca-Cola Classic) is standardized worldwide to leverage global scale and brand consistency.
However, it adapts to local markets by introducing region-specific products (e.g., Coca-Cola China's herbal tea drinks, Mexican Coke with cane sugar) and hiring local executives to manage regional operations. This allows Coca-Cola to be both cost-efficient and locally relevant.