Another name for a multidomestic strategy is an international strategy.
A multidomestic strategy, also known as an international strategy, is a decentralized approach to international expansion. Companies pursuing this strategy adapt their products, services, and marketing to suit the specific needs and preferences of individual country markets.
Here's a breakdown:
- Core Concept: Focuses on tailoring products and services to meet the unique demands of each local market.
- Decentralized Decision-Making: Local subsidiaries have significant autonomy in making decisions.
- Examples: Companies in the food and beverage industry often employ a multidomestic strategy to cater to local tastes. Think of variations in McDonald's menus across different countries.
| Feature | Multidomestic Strategy |
|---|---|
| Centralization | Decentralized |
| Adaptation | High degree of localization |
| Efficiency | Lower overall efficiency |
| Responsiveness | High responsiveness to local markets |
In essence, a multidomestic or international strategy views the world as a collection of independent markets, each requiring a customized approach.
