Compared to a global strategy, what is true about a multidomestic strategy?

A multidomestic strategy focuses on tailoring products and services to meet the specific needs and preferences of each local market. This approach allows companies to be more responsive to local demands, cultures, and market conditions, leading to higher local responsiveness.

In contrast, a global strategy seeks to standardize products and operations across different countries to achieve economies of scale and reduce costs. While this can lead to significant cost savings, it often sacrifices local responsiveness because the offerings may not be fully aligned with local preferences.

Thus, while a multidomestic strategy enhances local responsiveness, it typically involves higher costs since companies might need to adapt their offerings and operations for each market. As a result, this strategy may lead to lower overall cost reductions compared to a global strategy. The emphasis on meeting localized customer needs drives up costs due to increased complexity in operations and product adaptation.