If the Fizz company’s product is canned soda and coffee beverages, which strategy for competing internationally would the Fizz company most likely employ?

If the Fizz company’s product is canned soda and coffee beverages, which strategy for competing internationally would the Fizz company most likely employ?
A . multidomestic
B . transnational
C . global
D . international

View Answer

Answer: B

Explanation:

A transnational approach is appropriate for the Fizz company. Country-to-country customization (of labels and brands) to accommodate differences in taste preferences would most likely be necessary. The transnational company has a high global integration and a high local responsiveness strategy. The transnational company has characteristics of both the global and multidomestic firm. Its aim is to maximize local responsiveness but also to gain benefits from global integration. Transnational companies often try to create economies of scale more upstream in the value chain (production) and be more flexible and locally adaptive in downstream activities such as marketing and sales. Think of Soda drinks being marketed in the local language of the foreign market even though it is the same content across countries.