Free Paper Sample on Multinational Business Strategies: A Case Study and Analysis

The Nihon Kaiheiki Industries Co.Ltd (Nikkai) is among the top-ranking industrial switch producing company. In the current search by the company for new uses and applications, Nikkai company requires to restructure its organizational and distributional associations. The world switch market is estimated as 400,000,000,000 switches annually (Bhattacharyya and Verma 2019, p.36). The intelligent switch as a product of specialized production by the Nikkai company has managed to perform well due to aspects such as low competition and high technological applications. The company initially produced the Toggle Switch, which was then followed by the production of the rotary switch. The Nikkai company should choose specialized switch production as their strategy towards company growth and increased sales; however, with the use of proper planning and market development capacities.

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Nikkai company received special instructions from a client, which led to the development of version 5 switches on operation control for broadcasting equipment. The growth of text five switches was also stimulated by the demand for specialized switches by Sony for their sound maker equipment. The dedicated switches for broadcasting equipment by Nikkai, however, only performed best within the Japan domestic market. In order to increase the demand and sales for level 5 switches, Nikkai would have evaluated their prices in comparison to the expected performance on global markets. Therefore, due to the reliance on customer reviews and demands for developing newly specialized switches, the company should have a greater sense of urgency and improved skills to discover new fields.

According to Von (2016, p.19), in 2006, Nikkai Company lost its commercialization alliance company due to decreased sales following the reduction of switch sizes. Thinner switches had been achieved through the application of organic EL displays, which it achieved in partnership with Mitsubishi Chemical Corporation. Nikkai Company further developed its organic El display currently used on the Mercedes Benz, which paid off by an increase in the percentage of sales. Therefore, it is evident that the production of technologically advanced switches specialized for specific functions is a strategy towards attracting increased sales.

Touch panels constituting Nikkai Company generally produced switches indicate difficulty in functionality, especially when particular confirmations are necessary. The touch panels also result to decrease in profits due to the inability of the company to put under use most of its mechanical engineering knowledge. Based on the case study, Nikkai Company initially produced the toggle switch followed by the intelligent switch then the touch panel. The Toggle switch still seems to take up 80% of the market, unlike the smart and Touch panel switches, which take up 10% each. Price does not seem to be the factor affecting quick switch sales as it might have been reduced effortlessly to attract sales. Therefore, for Nikkai to choose the specialized production of intelligent tools, the company has to develop programs to assist users in understanding the technology.

According to the Nikkai case study, low competition and advanced use of technology have promoted to its great performance in switch production. The company, however, faces a setback due to the overreliance on external sources of innovation hence failure to spot new fields. Nikkai Company also consists of higher sales for its older technology, the Toggle switch, in comparison to the intelligent switch due to inadequate knowledge by their consumers. Never the less, Nikkai Company has shown increased sales resulting from advanced switches technologically. Aspects such as educative user programs and increased innovation urgency by Nikkai Company would impact the sales of specialized switches.

Transnational Example

A firm that has its operations ongoing in more than one country is referred to as a multinational corporation. Global integration refers to the multinational country’s degree of selling similar products and methods in different countries. Local responsiveness, on the other hand, is the extent to which a company must modify their products to meet the expected conditions in different countries (Harrigan 2017, p.89). Organizations using the transnational strategy aim at adjusting to the local consumer preferences while at the same time providing efficiency. KFC is an example of a business practicing a transnational strategy. The organization uses a similar name globally as well as the core menu despite the few concessions made to the local taste.

Multi Domestic strategy

A firm may choose to provide responsiveness to each local, regional countries of its operations at the cost of efficiency. Unilever, for instance, applies complex marketing skills where it considers product differences and market variations around the world. Among the critical aspects involved by Unilever in practicing multi-domestic strategy include; product, place, promotion, and price. Uniliver uses retailers, kiosks, and stores for product distribution, where kiosks are commonly used to introduce the commodity directly to the consumers. Aspects such as pricing are determined by the local region competitor prices and the use of product discounts.

International Pattern

The international strategy combines both multi-domestic and global policies. In most cases, companies adopt the general pattern as a way to counter competition to produce locally available products. A company, therefore, achieves economies of scale through standardization as well as local modification (Oberg 2019, p.115). Ford motor company is an example of companies adopting international patter. Ford is producing high-quality cars with similar platforms globally but with the ability to accommodate extensions. More developed countries are used as the headquarters where people from the branch countries visit to acquire knowledge.

Global

When a firm uses the global strategy of product globalization, local requirements are met at the cost of responsiveness to promote efficiency. This particular method aims at gaining economies of scale through the offering of similar products or services in all its different markets globally (Pelecksis 2016, p.90). However, in some cases, minor adjustments are placed in some regions. Microsoft, for instance, applies the global, transnational trade strategy through the provision of the same products globally but, it has created an allowance for adjustments to local languages. The comprehensive approach is efficient for companies whose products are undisclosed to the consumer’s view, such as the Intel behind the commodity.

Conclusion

Therefore, a multinational country is one that has its operations ongoing in more than one country. Several strategies are used during transnational trade; multi-domestic trade, global trade, international and transnational patterns. The multi-national trade/multi-domestic trade is symbolized by the modifications of products differently based on the country. Global business, on the other hand, aims at offering the same product quality globally with allowances for local modifications. International trade uses advanced counties technologically as their headquarters, where other nations can visit to obtain knowledge for the purpose of retaining brand quality. Finally, the transnational globalization pattern involves the use of a similar brand name with core quality retention with allowed space for local characteristics.

References

Bhattacharyya, S.S., and Verma, S., 2019. The intellectual core and structure of international business strategies (IBS). Review of International Business and Strategy.

Harrigan, K.R., 2017. Joint ventures and global strategies. In International Business (pp. 329-338). Routledge.

Öberg, C., 2019. Additive manufacturing–digitally changing the global business landscape. European Journal of Management and Business Economics.

Peleckis, K., 2016. International business negotiation strategies based on bargaining power assessment: the case of attracting investments. Journal of business economics and management, 17(6), pp.882-900.

Von Rimscha, M.B., 2016. Business models of media industries: Describing and promoting commodification. Managing Media Firms and Industries (pp. 207-222). Springer, Cham.