Developing a global strategy

Today we live in a global economy in which the time taken for people to move between continents has been significantly reduced and in which Internet and other connections make instant connections possible. The business response of large business organisations has to recognise that they now operate in a global market place and to develop appropriate strategies. A global strategy is an organisational plan that takes into account these new global realities. For example, in food manufacture companies like Nestle, Kellogg's, and Cadbury Schweppes they have developed global distribution and marketing networks, based on powerbrands i.e. market leading brands that are recognisable in nearly every country in the world. Key aspects of global strategy include: 1. Treating the global market as the domestic market. 2. Creating a global marketing mix, which at the same time recognises regional and national differences, such as differences in language and tastes. 3. Creating global production and distribution systems, e.g. superfactories covering major areas of the world. 4. Concentrating on powerbrands - the most successful brands and products. Because the global market is so large there are substantial benefits to be gained from economies of large scale production, marketing and distribution. Rather than producing thousands of different products it makes sense to narrow down the range to a much smaller number in order to support these brands across the globe.