Advantages
Transnational strategies can provide businesses with many advantages. A transnational strategy provides organizations with a web of global alliances that enable virtual operation of the business. Transnational strategy allows from mass customization; meaning that the basic processes are uniform but can be customized to individual countries. Transnational strategies also facilitate global e-commerce and customer service, better resource management, and streamlined manufacturing processes. These three items can help boost profits for companies and create competitive advantages.
Disadvantages
The disadvantages of focusing on a transnational strategy include cultural challenges, political and economic challenges, and infrastructure challenges. Cultural challenges include the difference of opinions, beliefs, values, tastes, and preferences of people of different countries or subsections of the world. A transnational strategy focuses on uniformity. What citizens of the United States like or demand may be different from what consumers in Asia, Europe, Africa, South America, or Australia want. Each of these areas has different values and beliefs that they favour. Different cultures also value different work styles and relationships. Companies may need to tailor strategies to the local preferences in order to be successful. Political and economic challenges can resultfrom regulation practices, monetary policy, government involvement, or evencensorship laws. Google decided toremove itself from China due to the censoring of the Internet by Chineseofficials. Unrestricted Internet accessis taken from granted in America, but longed for in other parts of theworld. Finally, transnational organizations can face infrastructure challenges. Developing nations may not have the data capabilities or a fibre-optic network like those of the world’s superpowers. This and other infrastructure issues,including transportation, could impede the progress of a transnational strategy.
A transnational strategy is when an organization or company decides to operate beyond their national borders, in essence becoming international or multi-national. Such a strategy has tremendous advantages but can also come with a lot of potential difficulties. Some issues that an organization may face while pursuing a transnational strategy include:
Over-extension of resources
Political turmoil
Threat to home market position
Duplication of effort
Financial risk
Before an organization pursues a transnational strategy they should first ensure that such a move is absolutely int their best interest and that it provides a reasonable return on investment.
Refer to
http://enbv.narod.ru/text/Econom/ib/str/...
In Strategy for International Business, there are different strategies one is Transnational Strategy. And I want to know what are the different drawback, weakness or problems of Transnational Strategy.
Thank you so much for the Help ^^,
