Global Strategy Report: Evaluating USA Market for Furniture Expansion

This report delves into the development of a global strategy for a company aiming to expand its furniture market presence. It begins by defining the concept of a global strategy and contrasts it with international, transactional, and multinational strategies. The report then identifies the USA, China, and Europe as potential countries for globalization, providing pros and cons for each. Ultimately, the USA is chosen as the most favorable market due to its growth potential and cultural factors. The report provides evidence supporting this choice, including the expanding population and consumer preferences. Finally, it outlines key areas for benchmarking during global expansion, such as industry-specific surveys and data analysis, to support decision-making. The report concludes with a list of relevant references.

Global Strategy
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Contents
Define Global Strategy....................................................................................................................3
Countries for globalization..............................................................................................................3
Country to choose:...........................................................................................................................4
Evidence:.........................................................................................................................................4
Areas to benchmark in preparation for the decision regarding global expansion...........................4
References:......................................................................................................................................5
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Define Global Strategy
The global strategy is a tactic utilized by companies to compete and expand in the global market.
A global strategy is referred to the plans which an organization develops to target growth beyond
its borders. With an associated world, the income of business should not be restricted by fringes.
There are three questions which are to be answered by the sound global strategy of what is the
extent of market presence? How to develop a needed global presence? And what should be the
optimal location for various business chains? The companies need to include international
strategies to uplift their sales (Gollnhofer and Turkina, 2015).
Comparing and contrasting global strategy with other International expansion strategies
International strategy:
There are three types included in International strategies; Global strategy, transactional strategy
and Multi-domestic strategy. All the three strategies have been compared below with the global
strategy.
Global strategy: Active working with the global strategy forfeits responsiveness for areas of
concern in every industry. A comprehensive strategy would be contrary to multi-domestic
strategy. Certain modern improvements in goods will also make development in diverse market
segments.
Transactional strategy: A company utilizing transactional strategy would utilize simultaneous
demands and environmental forces for global efficiency (Kim, et al., 2017). The features of
global, multinational and international models are combined in the transactional strategy. A
product is developed for being globally competitive and is altered by local subsidiaries for
meeting local demands.
Multinational strategy: The companies having both global and multinational strategy have a
presence in multiple countries, but the multinational companies pay more attention towards
altering its products and services to local markets. The global strategy looks towards the whole
world where as multinational only focuses more on local markets.
Countries for globalization
The three countries selected are the USA, China and Europe.
Europe
Pros: Europe having an elegant taste of furniture is open to diverse variants of furniture.
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Cons: The average cost of items is decreased as individuals residing in Europe do not live in
expensive houses.
China
Pros: China is a noteworthy participant in the world’s household furniture market. The furniture
market in China can generate profits of $14.5 billion (Lessard, 2018).
Cons: More population needs more service but high demands of China increase deforestation
which is unhealthy for China.
USA
Pros: the USA has a large market opportunity for a wide range of furniture.
Cons: Due to certain weaker market section few of products won’t be sold in the USA.
Country to choose:
The nation to favour for furniture market is the USA as it affections a large mixture of furniture.
This kind of upkeep for a different type of furniture will set its costs with global strategy. The
expanding population and need for furniture will increase the sales of the company in the USA.
Evidence:
There are chances of growth in the USA market due to the expanding industry and various
traditions followed. It is a culture in the USA that there are separate beds for children’s a swell
which increases the sales of the company. Most of the people from the USA prefer purchasing
products at the same cost so it can assist the company in selling their products without any
bargaining (Polak, et al., 2015). The alternative cannot be selected as the growth potential in the
USA is higher then any other country selected.
Areas to benchmark in preparation for the decision regarding global expansion.
The areas that the company can benchmark during global expansion are,
 Conducting a customized and industry-specific benchmarking survey which is focused
over the internal structure and global resourcing.
 Distributing the questionnaires of the survey to participate in companies, collecting data
and analyze the data.
 Develop data-driven recommendations which also define the opportunities and resources
for companies to expand globally.
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References:
 Gollnhofer, J. F., & Turkina, E. (2015). Cultural distance and entry modes: implications
for global expansion strategy. Cross cultural management, 22(1), 21-41.
 Kim, H., Lee, J., & Kwon, K. H. (2017). Kolon FnC’s Global Expansion Strategy. Asian
Case Research Journal, 21(02), 253-280.
 Lessard, D. R. (2018). Aspen Aerogels: a capability-based framework for global
expansion. The Business & Management Collection.
 Polak, T., Watson, J. E., Fuller, R. A., Joseph, L. N., Martin, T. G., Possingham, H. P., ...
& Carwardine, J. (2015). Efficient expansion of global protected areas requires
simultaneous planning for species and ecosystems. Royal Society open science, 2(4),
150107. Retrieved from: https://royalsocietypublishing.org/doi/full/10.1098/rsos.150107.
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