What is a primary drawback of a localized multidomestic strategy?
A)It hinders the use of cross-border coordination of a company's activities and increases a company's vulnerability to adverse shifts in currency exchange rates.
B)It makes it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods.
C)It makes it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions.
D)It hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates.
E)It is unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's business model to compete on the basis of low price.

Question

Quizplus · Accepted Answer

The primary drawback of a localized multidomestic strategy is that it hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates. This can limit a company's ability to achieve economies of scale and scope, share best practices, and leverage its core capabilities across different markets.

What Is a Primary Drawback of a Localized Multidomestic Strategy