Domestic Strategy

Definition (1):

Domestic strategy means internationalizing by exporting goods abroad as a means of seeking new markets. At this stage, the firm is focusing on domestic markets and exporting their products without altering the products for foreign markets. An export manager may be assigned to control foreign sales. Management at this stage usually adopts an ethnocentric attitude, as well as a short-term perspective.

Definition (2):

A domestic strategy is a strategy used to make money through business and development programs. It also encourages international labor standards.

Definition (3):

A domestic strategy allows managers in every country to adapt their services and products to match government regulations, local market preferences, competitive situations, and technological capabilities.

In case of this strategy, the business unit of each country will include as much of the value chain as possible or feasible- for instance, marketing, research and development, production, sales, inbound logistics, service, and distribution- and all of its functions will be customized to the requirements of that country. In contrast, a company following a global strategy functions in its different markets from centralized facilities, it limits the value chain’s replication in different countries. The economic forces generate pressure for using a global strategy, while the social forces influence companies to function under the domestic strategy.

Share it:  Cite

More from this Section

  • Barrier analysis
    Barrier analysis is the process of reviewing an organization’s policies and procedures ...
  • Fact finding
    Fact finding is the process of utilizing an impartial third party, not employed by the ...
  • National origin
    National origin is the country--including those that no longer exist--of one's birth or ...
  • Rotational training
    Rotational training is a training method where employees are rotated among a variety of ...
  • Rate Ranges
    Rate Ranges are a series of steps or levels within a pay grade, usually based upon years ...