Explain the strengths and weaknesses of Multi-domestic strategy, Global strategy, and Transnational strategy for Microsoft to improve its global business

Advantages of Multi-domestic strategy:

• It is capable of meeting the need of each market effectively.
• It is capable of adjusting according to the changes made in local markets.

Disadvantages of Multi-domestic strategy:

• It is very expensive and involve high production and distribution cost.
• Resources are shared in this strategy and so it hinders the availability of company's resources.

Advantages of Global strategy:

• Economies of scale are present and hence there it involved low costs.
• It gains the benefit of global brand image.

Disadvantages of Global strategy:

• It fails in addressing the needs of local markets.
• Coordination may become difficult due to differences in the culture of different areas.

Advantages of Transnational strategy:

• It includes both local and global marketing practices.
• High coordination due to great efficiency and flexibility.

Disadvantages of Transnational strategy:

• This strategy is more complex.
• It may me time consuming.

Microsoft being a global brand, it has to address to different markets along with the international market. It operates in different countries and o understand the market pattern of different country, Microsoft may adopt Multi-domestic strategy. This will help the company to understand the needs and preferences of the different markets and provide products according to the buying pattern of the consumers and needs of different business organizations at different locations.