Question: A localized or multidomestic strategy a . has two big drawbacks: ( 1 ) it hinders transfer of a company's competencies and resources across country
A localized or multidomestic strategy
a
has two big drawbacks: it hinders transfer of a company's competencies and resources across country boundaries because the strategies in different host countries can be grounded in varying competencies and capabilities; and it does not promote building a single, unified competitive advantage, especially one based on low cost.
b
is generally best suited for globally standardized industries, in which small countrybycountry differences can be accommodated.
c
involves much less adherence to using the same basic competitive strategy theme lowcost differentiation, bestcost or focused in all country markets.
d
is generally preferable to a global strategy in situations where buyers are price sensitive because a "thinklocal, actlocal" type of multidomestic strategy is better suited to achieving low unit costs than a global strategy.
e
is generally inferior to a global strategy when it comes to pursuing product differentiation.
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