Ryuuku Inc., a cloth manufacturing company, enters a foreign market. It tailors its products and distribution strategies to meet the needs of the local market. Modifying the products and operations to fit local customer requirements results in high cost to the company; however, the revenue was higher than that in the domestic market. In this case, the competing pressure addressed by Ryuuku is __________.

Question

Quizplus · Accepted Answer

The competing pressure addressed by Ryuuku is local responsiveness. Ryuuku has tailored its products and operations to meet the needs of the local market, resulting in higher revenue. This indicates that the company is addressing local market needs and preferences, which is the essence of local responsiveness. The high cost incurred due to tailoring products and operations indicates that global standardization is not being employed. Licensing requirements and mass customization are not relevant to this scenario.