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Factor of interdependence in multidomestic strategy is

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What is a Multi domestic strategy?

The multi domestic or multi-national market concept focuses on maximizing the company’s effectiveness and efficiency in exploiting economies of scale, experience and skill in marketing, production and logistics. A company adopting such an orientation assumes that foreign market opportunities are as important as home market opportunities. However, the company takes the view that the differences between its international markets are so acute that adaptation to meet market needs is necessary to retain competitive leverage in local markets. Thus the company essentially follows a differentiated marketing strategy with different marketing mixes in many of their world markets.

 

Multi domestic strategy for global presence

Whilst there has been considerable debate amongst writers during the 1980s about the advantages and disadvantages of multi-domestic strategy to obtain an internationally reasonable competitive benefit rather than the pursuance of an world-wide approach through standardization of actions, it is distinct that for many key firms there are a number of positive aspects to be obtained from universal standardization in their actions and that a well organized and managed multi-domestic strategy is an effective method for the majority of companies to develop a global presence.

Whilst there are many forces driving companies towards achieving a global strategy through standardizing as many marketing activities as possible, there are also very important prevailing arguments persuading companies that they are still more able to achieve an effective worldwide strategy through a multi-domestic approach. These forces are as follows.