The drawbacks of a localized multidomestic strategy include
A) hindering the use of cross-market subsidization techniques and increasing company vulnerability to adverse shifts in currency exchange rates.
B) making it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods.
C) making it difficult and costly to be responsive to country-to-country differences in customer needs,buying habits,cultural traditions,and market conditions.
D) hindering transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single,uniform competitive advantage in all country markets where a company operates.
E) being unsuitable for competing in the markets of emerging countries and posing added difficulty in building multiple profit sanctuaries.

Question

Quizplus · Accepted Answer

A localized multidomestic strategy focuses on adapting products and marketing strategies to each local market, which can hinder the transfer of a company's competencies and resources across country boundaries. It also makes it difficult to pursue a single, uniform competitive advantage in all country markets where the company operates. This can limit the company's ability to achieve economies of scale and scope, and may also make it more difficult to coordinate global operations. While the other options may also be disadvantages of a localized multidomestic strategy, they do not capture the overarching issue of hindering the transfer of competencies and resources.

The Drawbacks of a Localized Multidomestic Strategy Include