Question

Because keeping cost low is critical to IKEA's value innovation, it switched from a(n)

A. international strategy to a global-standardization strategy.
B. international strategy to a multidomestic strategy.
C. transnational strategy to a global-standardization strategy.
D. transnational strategy to a multidomestic strategy.

Answer 1

international strategy to a global-standardization strategy.

Step-by-step explanation:

Global standardisation is the ability of a company to use standard marketing internationally. That is one method is used accross different countries and cultures.

On the other hand the use of international strategy involves tailoring marketing process to a unique culture in international transactions. This is expensive as the company will have to develop different strategies to operate in different countries.

In order to reduce cost it will be better for IKEA to switch from international strategy to global standardisation strategy.

Answer 2

Answer: the correct option is A.

Explanation: First, we will define International Strategy and Global-standardization strategy.

International strategy refers to a business plan or strategy that is created by a company to do its business in foreign markets. This strategy requires analyzing the international market, defining goals, understanding market dynamics & develop offerings that are peculiar to each foreign market.

Global standardization is the strategy of using standard marketing internationally. What this means is that, it is the ability of a company, business or organization to use the same marketing strategy from one country to the next, and across various cultures.

From the above definitions, we can conclude that a Global standardization strategy is more cost efficient, because there is no case repeating the same marketing strategy cost. This will therefore ensure that cost is kept low and at a minimum.