When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

Question

Quizplus · Accepted Answer

Firms pursuing a global standardization strategy try not to customize their product offering and marketing strategy to local conditions because customization involves shorter production runs and the duplication of functions, which tends to raise costs. Instead, they prefer to market a standardized product worldwide so that they can reap the maximum benefits from economies of scale and learning effects. They also tend to use their cost advantage to support aggressive pricing in world markets.

When a Firm Has a Strategic Goal of Pursuing a Low-Cost