A Localized or Multidomestic Strategy

question 63

Multiple Choice

A localized or multidomestic strategy

• A)is generally inferior to a global strategy when it comes to pursuing product differentiation.
• B)has two big drawbacks: (1)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 (2)it does not promote building a single, unified competitive advantage, especially one based on low cost.
• C)is generally preferable to a global strategy in situations where buyers are price sensitive because a "think-local, act-local" type of multidomestic strategy is better suited to achieving low unit costs than a global strategy.
• D)is generally best suited for globally standardized industries, in which small country-by-country differences can be accommodated.
• E)involves much less adherence to using the same basic competitive strategy theme (low-cost, differentiation, best-cost, or focused)in all country markets.

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