International Strategy Management: Global Local Dilemma and VRIO Framework

International Strategy
Management

TABLE OF CONTENTS
1. Global local dilemma and its four forms of participation strategies:......................................2
3. Effectiveness of VRIO framework in identifying as resources can be used a s a source of
competitive advantages................................................................................................................4
REFERENCES................................................................................................................................9

1. Global local dilemma and its four forms of participation strategies:
Every business organization want to expand their business across international border,
dealing in foreign market is one of the biggest dream of every company (deGuzman, 2018).
International market require company to be successful in their local market, then they can enter
into these foreign one. Many successful multinational companies like Tesla always look for
international expansion, they look for global local dilemma and its strategy which bring easiness
in expansion process. Global local dilemma means when company plan to expand their business,
then they have various strategy which will help company to perform expansion effectively.
This dilemma affect certain areas of company, mainly local area where company is expert
in dealing, this dilemma allow company to be king of local market as well as this help company
to become king of international market. Global local dilemma means, company use same local
product and strategy to deal in other nation, which means business will not going to change
product or innovation but rather they are planning to change the market. Dilemma of local
responsiveness may be different from local market so that company have to modify or customize
some of their product to meet the requirement of customer in different nation. There are four
strategies of global local dilemma, these are:
Multi domestic strategy: multi domestic strategy means business try to focus more on local
responsiveness of customer rather than adopting only one global strategy, many multinational
firms like Tesla deal in various countries and use different marketing strategy in each of these
nations, this company try to avoid one global marketing concept because taste and preference of
customer may be different from countries to countries (Peng, 2021). Multi domestic strategy
state that local should be first priority of company rather than reaching foreign customer base, it
is very clear that every multinational company have regional local brand which allow them to
reach as many local segment as possible.
In this strategy company develop various marketing strategy to win local market and
customer, Tesla usally adopt multi domestic strategy to win the local customer, marketing of this
company may be different in one country and different in another country. There are certain
advantage of this strategy; multi domestic strategy allow company to provide highly localized
product which meet the demand of local customer allowing company to expand in these local