One Stop Inc., a supermarket chain, is implementing a multidomestic strategy.Solar Com 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) One Stop Inc. will focus more on cost-reduction than Solar Com Inc.
B) One Stop Inc. will have its business functions spread across the world; Solar Com Inc.'s business functions will be highly centralized.
C) Unlike Solar Com Inc., One Stop Inc. will be able to pursue a differentiation strategy at the business level.
D) Unlike Solar Com Inc., One Stop Inc. will be able to reap significant economies of scale and location economies.

Question

Quizplus · Accepted Answer

Unlike Solar Com Inc., One Stop 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.