The main disadvantage of a multidomestic strategy is:
A) customized products are available.
B) core competences are shared.
C) core competences are not shared.
D) local responsiveness is enhanced.

Question

Quizplus · Accepted Answer

The main disadvantage of a multidomestic strategy is that core competences are not shared. This means that each subsidiary operates independently, often resulting in the duplication of resources and capabilities across different locations. This can lead to higher costs and a lack of efficiency. However, the advantage of local responsiveness is often greater than the disadvantage of not sharing core competences in certain industries or markets.

The Main Disadvantage of a Multidomestic Strategy Is