This chapter begins with a review of fundamental concepts of strategy, such as its definition, competitive dimensions, order-qualifying and order-winning criteria, productivity frontier, and strategic fit. It then introduces value chain analysis. Multinational companies face pressures to reduce costs and localize operations. While adopting an international strategy is one option, companies can also consider implementing a standard globalization strategy, localization strategy, or transactional strategy. Illustrations of these four strategies in value chains are provided. The final part of this chapter discusses five local integration strategies that multinational companies can adopt to enhance local responsiveness in a host country.