What is the primary purpose of a global strategy?

The primary purpose of a global strategy is to establish a competitive advantage on a global scale. This involves integrating and coordinating activities across different countries to create value and achieve synergy. Companies pursuing a global strategy aim to leverage their resources and capabilities internationally to enhance their position in the global marketplace. This can include expanding their market reach, optimizing supply chains, and capitalizing on regional advantages such as lower costs or specialized skills.

In contrast, focusing solely on domestic markets does not align with the objectives of a global strategy, which seeks to embrace international opportunities. Additionally, minimizing international operations directly contradicts the essence of global strategy, as it involves engaging with multiple markets instead of reducing presence. Lastly, while cost reduction can be an element of a global strategy, prioritizing it over market expansion does not fully encapsulate the broader goals of gaining competitive advantages that come from effective global engagement. Thus, establishing a competitive advantage on a global scale represents the core intention behind formulating and implementing a global strategy.