Use the following questions to determine the firmâs correct strategic choice given the realities of its marketplaces and its previous strategic postures. Select the correct strategy.
Your firm has been a leader in several lines of fast-moving consumer goods. The firm has been following a localization strategy. Your products have been distributed in a number of foreign markets and regions, and they are distinct enough in local markets to respond to national tastes and preferences. Competition, however, has become more intense, with many competitors using lower cost structures to undercut your prices and still satisfy your customers. The firm must decide what kind of strategy it needs to follow to meet the demands of the local markets as well as the increased competitive pressures on cost.
1. Pressures for local responsiveness may make it difficult to ______________________________.
a. compete effectively in more than one international market
b. monitor and adapt to changing customer tastes in a large number of foreign markets
c. leverage skills and products associated with a firmâs core competencies from one country to another
2. __________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.
a. Localization strategy
b. International strategy
c. Transnational strategy