When a company operates in the markets of two or more different countries,its foremost strategic decision is
A)whether to use strategic alliances to help defeat its rivals.
B)whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries.
C)whether to maintain a national (one-country)manufacturing base and export goods to the other countries.
D)which foreign companies to team up with via strategic alliances or joint ventures.
E)whether to test the waters with an export strategy before committing to some other competitive approach.

Question

Quizplus · Accepted Answer

When a company operates in different countries, it needs to decide whether to adapt its competitive approach to fit each country's market conditions and buyer preferences or whether to use the same strategy in all countries. This is because different countries have different cultural, social, economic, and political conditions that affect consumer behavior and market demand. Adapting the competitive approach to fit each market helps the company meet customer needs effectively and gain a competitive advantage. On the other hand, using the same strategy in all countries may result in a lack of sensitivity to local conditions and a loss of market share to local competitors who understand the local culture and preferences better. Therefore, adapting the competitive approach to fit each market is the foremost strategic decision for a company operating in different countries.

When a Company Operates in the Markets of Two or More