As per Govindarajan and Gupta (2008), global strategies provide direction to the organization towards future challenges. The major benefit of global strategy is in a way that it may be more suitable in those organizations where it is very difficult to reduce cost but pressure for local responsiveness is less. Therefore a standardized product is manufactured and sale out worldwide. Global strategy organizes and co-ordinates product, price and placement strategies across international markets and locations, firms that are utilizing global strategies are pretty centralized and integrated with the group stakes and strategies.
The major reason of using global strategies is that they help to increase and foster economic independence among national markets and multinational enterprise is a key driver of globalization as well. For the purpose of assessing whether these organizations are implementing global level operations, it is possible in a case if firms are global in their real market penetration level across globe. By getting the date of 500 MNEs, it can be stated that some firms are successfully global but most of the firms are not because their operations are based on breadth and depth of market coverage (Rugman & Verbeke 2004).