Unlike firms pursuing a global standardization strategy, firms pursuing an international strategy
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Although cost leadership is perhaps less relevant for firms pursuing product differentiation, costs are not irrelevant. What advice about costs would you give a firm pursuing a product-differentiation strategy? What is the role of costs in a product-differentiating firm?
Ryanair, Wal-Mart, Timex, Casio and Hyundai are all cited as examples of firms pursing cost leadership strategies, but these firms make substantial investments in advertising, which seems more likely to be associated with a product differentiation strategy. Are these firms really pursing a cost leadership strategy, or are they pursuing a product differentiation strategy by emphasizing their lower costs?
In pursuing opportunities in foreign markets, MNEs may choose to adopt either a global strategy or a multi-domestic strategy. What are the conditions under which either a global or a multi-domestic strategy will make the most sense? Use examples to illustrate your point if you please.