Question

A "think local, act local" multidomestic strategy works particularly well when:

A) host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.
B) there are significant country-to-country differences in customer preferences and buying habits.
C) diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country to country.
D) there are significant country to country differences in distribution channels and marketing methods.
E) All of these.

Answer 1

A "think local, act local" multidomestic strategy works particularly well when there are significant country-to-country differences in customer preferences and buying habits. Companies can tailor products and marketing strategies to meet the specific needs and preferences of customers in each country, gaining a competitive advantage.

Step-by-step explanation:

A "think local, act local" multidomestic strategy works particularly well when there are significant country-to-country differences in customer preferences and buying habits (option B). This strategy focuses on tailoring products and marketing strategies to meet the specific needs and preferences of customers in each country. By understanding and adapting to these differences, companies can better meet the demands of local markets and gain a competitive advantage.

For example, a fast-food chain may offer different menu items and flavors in different countries to cater to local tastes. This approach allows the company to effectively target and appeal to customers in each market.

While the other options listed also present factors that can influence the success of a multidomestic strategy, such as regulations (option A), trade restrictions (option C), and distribution channels (option D), it is the presence of significant country-to-country differences in customer preferences and buying habits that makes this strategy particularly advantageous.