Question

If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy, a transnational strategy, or a global strategy? Multiple Choice A transnational strategy would be appropriate since the same strategic theme could be employed, but country-to-country customization is necessary to accommodate consumer preferences in mobile phone features. A global strategy makes best strategic sense since country-to-country customization to fit local market conditions is necessary. A global strategy would be appropriate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal. A multidomestic strategy is called for since mobile phone features must be tailored to the specific market conditions and buyer preferences in each country market. A transnational strategy would make better strategic sense since it would be difficult to employ essentially the same strategic theme in all country markets.

Answer 1

A mobile phone company should employ a transnational strategy because it allows for the application of the same strategic theme while permitting necessary country-specific customization to meet diverse consumer preferences, balancing standardization benefits with local adaptation needs.

Step-by-step explanation:

If a company's product is mobile phones, it would likely make better strategic sense to employ a transnational strategy. This strategy is appropriate because it allows the company to apply the same strategic theme across different markets while still acknowledging the need for country-specific customization. Conforming to different consumer preferences in mobile phone features across countries is essential, given that tastes and functional requirements may vary significantly. For instance, a mobile phone that is successful in one country may require modifications to suit the network availability, cultural preferences, or legal requirements in another country.

On the other hand, a global strategy assumes a universal demand across all markets, which is not typically the case for mobile phones due to varied consumer needs and standards. Lastly, a multidomestic strategy may result in excessive fragmentation of the product line, undermining the advantages of economies of scale, which multinational companies (MNCs) like mobile phone manufacturers seek to exploit. Therefore, a transnational strategy strikes a balance between standardization and customization, ideal for competing in the international mobile phone market.

Answer 2

The correct answer is the third option: A global strategy would be appropiate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal.

Step-by-step explanation:

To begin with, in order to understand that using a global strategy is better and more suitable for the company first we need to understand that the company is working in the industry of mobile phones and therefore that is makes great sense to employ a global strategy that is focus on launching the products to the whole world or at least to the greater amount of countries that the company can because when it comes to mobile phones the needs of the consumers in every part tend to be the same and therefore it would no need much customization and the company will be able to release their product globally.