A company implementing a localized multi-country strategy to increase market share should engage in which of the following actions?

A company implementing a localized multi-country strategy to increase market share should engage in which of the following actions?
A . Sell different product versions in different countries under different brand names.
B . Sell the same products under the same brand name worldwide.
C . Locate plants on the basis of maximum location advantage.
D . Use the best suppliers regardless of geographic location.

View Answer

Answer: A

Explanation:

A localized multi-country strategy is a type of global strategy that involves adapting products, marketing, and operations to the specific needs and preferences of each country or region where the company operates. This strategy allows the company to increase its market share by appealing to the local customers and differentiating itself from the competitors. A localized multi-country strategy requires the company to sell different product versions in different countries under different brand names, as this reflects the high degree of customization and localization that the strategy entails. The other options are not consistent with a localized multi-country strategy, as they imply a low degree of adaptation and a high degree of standardization across the markets. Selling the same products under the same brand name worldwide is a global strategy that assumes universal customer preferences and seeks economies of scale. Locating plants on the basis of maximum location advantage is a transnational strategy that balances global integration and local responsiveness. Using the best suppliers regardless of geographic location is a sourcing strategy that does not necessarily reflect the degree of localization of the products or the marketing.

References:

CPIM Part 2 Exam Content Manual, p. 19

Multidomestic strategy: Global success through localization

Localization strategy – How to build with examples