Global Business Strategy, 2nd Edition

CHAPTER 6

Global Strategy Formulation

Introduction

Strategy is about positioning a company for competitive advantage. It involves making choices about which markets to participate in, what products and services to offer, and how to allocate corporate resources. Its primary goal is to create long-term value for shareholders and other stakeholders by providing customer value. Strategy is different from a firm’s vision, mission, goals, priorities, and plans. It is the result of choices executives make about what to offer, where to play, and how to win, to maximize long-term value.

Choices must be made because there is usually more than one way to compete in every market. The choice of target market(s), the value proposition, capabilities, and management ...