Defining Characteristics of Multi-Domestic Organizations
In contrast to other strategies, multi-domestic organizations are defined by their adaptation. In this case, one of the main factors is local responsiveness – great attention to what people in specific locations want or need from the company (Tien, 2019). Another criterion is low pressure to reduce costs, which allows the company to charge higher than may be expected from local businesses (Tien, 2019). Furthermore, to be considered multi-domestic, firms need a significant presence in several countries and major modifications from one location to another.
Importance of Local Responsiveness
One factor that can easily distinguish a multi-domestic organization is high local responsiveness. To adhere to this criterion, the business must offer services and products adapted to the country’s needs (Hong, 2021). For example, national holidays and religious practices that are widespread in the country have to be acknowledged (Gooderham et al., 2022). Moreover, the prevalent age, ethnicity, language, and other characteristics must be considered for the product line (Susilo, 2021). Thus, a multi-domestic company may offer a unique set of goods for different locations or modify many products.
Netflix as a Multi-Domestic Business Example
One example of a multi-domestic company that fits the described criterion is Netflix. As a company that allows people to stream media, such as movies, cartoons, and television shows, Netflix does not offer the same selection of products for every country. In contrast, it produces local content focusing on countries’ tastes. For example, it has a Japanese show, Alice in Borderland, and a Spanish series, Selena: The Series, which are not translated from English but filmed in the respective states with local actors (De Silva, 2021). This finding allows one to understand why Netflix makes different content available in some countries, which is significant for analyzing its marketing and business strategy.
Reflection on the Analytical Approach
This analysis method allowed me to research a concept and easily find an example to explain it. I paid more attention to the idea that lies behind the specific strategies. By understanding the theoretical foundation, I could quickly think of a company that fits the criteria. This approach to examining new knowledge helps research topics where examples are not immediately apparent.
References
De Silva, D. (2021). Netflix banks on local language original content to retain its market leadership. Nasdaq. Web.
Gooderham, P. N., Elter, F., Pedersen, T., & Sandvik, A. M. (2022). The digital challenge for multinational mobile network operators. More marginalization or rejuvenation?Journal of International Management, 28(4). Web.
Hong, J. H. (2021). A global strategy of a company that uses culture content as its core business. The Journal of Industrial Distribution & Business, 12(6), 37-46. Web.
Susilo, D. (2021). Revealing how Coca Cola successfully broke into Indonesia market with a Coke. Journal Economic and Business of Asia University Taiwan, 3(2), 118-126. Web.
Tien, N. H. (2019). Comparative analysis of multidomestic strategy of P&G and Unilever Corporation. International Journal of Foreign Trade and International Business, 1(1), 5-8.