Boeing and FedEx
Christopher Cosby
California State University San Marcos
Global and Multi-Domestic Companies Global strategies and multi-domestic strategies are important for companies who need to better understand and serve the needs of their customers. A company’s decision to follow a global or multi-domestic strategy can help a firm decide how it will utilize its resources and processes to provide products or services. Companies that employ global strategies are known for making a product that is attractive across various markets, products like commercial aircraft. Multi-domestic firms focus more on the individual needs and values of their target markets and customize their products …show more content…
Boeing competes across a broad spectrum of markets in order to sell commercial aircraft. According to Boeing, 80 percent of its orders for commercial jets come from international carriers (Seil, 2011). In order to accommodate these orders, Boeing does not have to overhaul specific airframes in order to suit each individual carrier’s marketing needs because the carriers usually outfit the aircraft to meet their needs (Seil, 2011). However, Boeing does not ignore the needs of its global customers, but Boeing looks at global trends in the commercial aviation industry and the company tries to build an aircraft that suits the most common needs across the industry (Seil, 2011). For example, Boeing is considering the construction of assembly plants overseas to build in response to the need for narrowbody aircraft for small low-cost airline startups in Asia (Wang, 2015). Boeing’s global strategy also encourages partnerships with global suppliers to ensure that there is always a competitive pool of suppliers. Using global suppliers allows Boeing to exercise significant bargaining power of buyers in order to keep costs low (Kavilanz, 2013). For example, when Boeing decided to build the 787 Dreamliner, the firm decided to rely on international suppliers to build major components of the aircraft and then fly the components to the United States for final assembly (Kavilanz, 2013). …show more content…
Global strategies, like the strategy of Boeing, are made to respond and satisfy trends across various markets through goods and services that can satisfy the most needs in a homogenous fashion. Multi-domestic strategies, like the strategy of FedEx, focus on individual markets and integrate a firm’s capabilities in a manner meant to best serve each