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4. Assuming that movie studios will be able to create breakthrough hits that are attractive for b...

4. Assuming that movie studios will be able to create breakthrough hits that are attractive for both Eastern and Western audiences, what type of global strategy would that entail? What are some benefits of this type of global positioning? What are some of its risks? Why is this type of global positioning so hard to achieve?

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Answer #1
  1. The type of strategy that they are following is global standardization strategy.
  2. benefits
  • More profit
  • Global division of labor
  • Labor at lower cost
  • 3 Risks
  • No local customers
  • Exchange rates
  • wages increase
  • 4 Its hard to achieve because of the following reasons

Pricing : Need to calculate the cost for different countries and need to fix a price which is profitable.

Policies and regulations: It will be different from one country to another so we need to follow the regulations of that particular country.

Exchange rates: It may vary time to time which may leads the company to a lose

Large structure: To control all the activities the company need a large structure which leads to the high cost

Communication issues are also will be a challenge

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