If a company has already achieved some success in international business, guided by the strategic logic of decision-making, and the internationalization of its activities has been successful, it should further develop the strategic management process of its operations. The multilocal or multinational approach implies the presence of a set of relatively independent subsidiaries, each of which serves national markets. In this case, the company has excellent opportunities to adapt its products and marketing campaigns (Lasserre, 2017). Moreover, a company’s production methods of goods or services can completely meet the consumers’ needs with different tastes.
A standard example of such a firm is the Swiss Nestle, which has a decentralized structure and a widely diversified product line adapted to the specific needs of consumers around the world. For example, in Switzerland and Western Europe, the central emphasis in production is milk chocolate, which is in demand among consumers (Deligonul, 2020). Although in the Eastern European market, the company also successfully promotes dark chocolate.
Thus, the multinational strategy enables firms in each region to produce the most popular product, which leads to the growth of the company’s popularity. In turn, this guarantees that customer demand will be fulfilled. Therefore, I would choose the multilocal strategy for my business. In my opinion, it helps a firm predict possible profits and assess whether it is worth entering the market of a particular country. However, in order to produce research on client tastes and establish production, it is required to have start-up capital (Deligonul, 2020). Despite this, with an assessment of the competitive market and the ability of clients to buy new goods, the company does not lose start-up funds and also receives a significant profit.
References
Deligonul, S. Z. (2020). Multinational country risk: Exposure to asset holding risk and operating risk in international business. Journal of World Business, 55(2), 10.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher Education.