A home replication strategy takes advantage of current competencies but risks alienating foreign customers if it lacks local responsiveness.

Question

Quizplus · Accepted Answer

A home replication strategy involves replicating the business model and competencies from the home country in the foreign market. This strategy relies on leveraging existing capabilities and may not take into account local customer needs or preferences, potentially leading to a lack of local responsiveness. As a result, foreign customers may feel alienated, and the company may struggle to gain traction in the foreign market.

A Home Replication Strategy Takes Advantage of Current Competencies but Risks