World markets approaches and strategies
Introduction
Multinational corporations need to have strategies that will make them improve their sales and profits. To achieve this, they need to come up with the best market approaches and strategies which will enable them to achieve their objectives.
Question 1
Chevron company, which works to meet the high demand for energy (oil and natural gas), needs to do localization as they explore energy demands and look forward to the satisfaction of their clients.
For IKEA, the global strategy will be the best approach as it will help them reach their clients through the marketing of their products. Furniture will need a lot of advertising due to the high competition in the market.
The global strategy will suit Tata beverages as they have to explore the entire market to increase sales of their product through a lot of advertising.
Question 2
The energy company is of a high level of investment. It is still risky as other companies have been running for years hence venturing into it needs to join a company that has been in the market for years for the success of the business.
IKEA deals with home accessories, especially furniture items which need skilled labour. They identified china as the best to provide due to the high population, which meant that energy would be cheap, thus choosing a direct foreign investment.
As to acquire the higher end of the value chain, combining with a company that has a higher gross margin like Tetley would make sure that competitors cannot match. Tetley being well established in the international markets, Tata had to choose it for an easy venture into the market.
Question 3
I prefer a global strategic approach as it explores the entire market internationally through joint venture strategy entry. A joint venture helps to suit the demand of the market quickly.