The Basic Strategy Options for Local Companies in Competing Against

question 53

Multiple Choice

The basic strategy options for local companies in competing against global challengers include

• A)best-cost provider and focused low-cost provider and low-cost leadership strategies.
• B)export strategies, licensing strategies, and cross-border transfer strategies.
• C)utilizing understanding of local customer needs and preferences to create customized products or services, developing business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against expansion-minded multinationals.
• D)franchising strategies, multidomestic strategies keyed to product superiority, global low-cost leadership strategies, and cross-border coordination strategies.
• E)focused differentiation and broad differentiation strategies.

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Definitions:

Economic Profits

Profits calculated after considering both explicit and implicit costs, representing the total opportunity costs.

Loses

Refers to the situation where expenses surpass revenues, resulting in negative financial performance.

Long-Run Monopolistically Competitive Equilibrium

The condition in which firms in a monopolistically competitive market earn just enough revenue to cover all costs, including a normal profit, in the long term.

Enter Market

The act of beginning to offer goods or services in a particular marketplace.