Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?
A) Save On Everything Inc. will focus more on cost-reduction than Solar Future Inc.
B) Save On Everything Inc. will have its business functions spread across the world; Solar Future Inc.'s business functions will be highly centralized.
C) Unlike Solar Future Inc., Save On Everything Inc. will be able to pursue a differentiation strategy at the business level.
D) Unlike Solar Future Inc., Save On Everything Inc. will be able to reap significant economies of scale and location economies.

Question

Quizplus · Accepted Answer

Unlike Solar Future Inc., Save On Everything Inc. will be able to pursue a differentiation strategy at the business level. For firms following a global-standardization strategy, their business-level strategy tends to be cost leadership. Firms following a multidomestic strategy generally pursue a differentiation strategy at the business level.

Save on Everything Inc