The characteristic of globalization strategy is to sell standardized products and services to the whole world, and concentrate production and business activities in more favorable countries, thus forming experience curve effect and economies of scale. Globalization strategy emphasizes high concentration and relatively low cost, because it promotes standardized products around the world, forming an experience curve and economies of scale, but its adaptability is relatively poor.

The strategy of transnational localization can meet the individual needs of various places and has strong adaptability; The cost structure is high, and the experience curve income and location income cannot be obtained, and it is highly dispersed. It is characterized by attaching importance to the local demand of foreign markets (products are produced and sold locally, and local authorities have decision-making power; Different countries produce and sell different products).

Transnational strategy is the concentration of globalization strategy and transnational localization strategy, which can not only make use of the experience curve effect, but also meet the needs of the local market.

Extended data:

The goal of global strategy and its management

The goal of global strategy is divided into general goal and sub-goal. The overall goal is to consider the company's market and resource distribution from a global perspective in an increasingly complex environment, improve its competitiveness, enhance its competitive position, and maximize its overall interests. The overall goal of this strategy can be subdivided into:

Core goal: compete with powerful competitors in some new fields and make maximum progress, even if these fields are unfamiliar. The core goal determines whether we can win the monopoly advantage.

② Basic objective: To make the company's current business activities profitable on the overall level, and properly manage the business risks that may be caused by these gains. The basic goal determines whether it can survive in a certain period of time, and it can also create a foundation for further development.

(3) development, make oneself have the ability to adapt to the challenges of the future environment. The development goal is the key for the company to maintain and improve its global competitiveness.

④ Priority objective: On the basis of strategic evaluation, determine the priority order and give priority to the overall operation of the company. The priority goal embodies the guiding ideology of highlighting key points and solving major contradictions.

Global strategic management is first of all the management of the above target system. Through the management of these objectives and their interaction, the conflict between sub-objectives can be reduced, and their combined utility can be optimized, even the overall strategic objectives can be satisfied.

With a history of 100 years, Shell Oil Company of the Netherlands is the most global of all energy companies in the world, and it has a unique way to manage its strategic objectives: in order to cope with unstable factors in the world, such as the possibility of war and the upcoming war, Shell Company has used three lines of defense and set three objectives, namely geographical dispersion, product diversification and rapid adaptation to changes.

It sells oil in about 50 countries, and political or economic turmoil in one place will not have much impact on other parts of the company. In a country with a particularly delicate political climate, Shell usually obtains the monopoly right of the country's market to ensure a very high return.