Question

Locally manufactured Bubbles is a popular brand of detergent in Germany. However, with the entry of a foreign multinational into the market, Bubbles begins to lose market share. According to Christopher Bartlett and Sumantra Ghoshal, how can the producer of Bubbles best differentiate itself from foreign multinationals?
A. raising trade barriers

B. licensing their core technologies

C. standardizing their product offerings

D. focusing on market niches

E. entering into turnkey projects

Answer 1

Answer:

D) focusing on market niches

Explanation:

Bubbles should engage in focused differentiation strategies and try to offer a differentiated and unique product to meet the demands of specific narrow markets. By doing this the company will create niche markets where it can differentiate itself from other multinational brands. By concentrating in narrow markets, the company's marketing efforts should be more effective than other companies that sell products for mass consumption.

Answer 2

Answer: D. focusing on market niches

Explanation: Local manufacturers can make distinction between themselves and foreign multinationals who usually come into the market boasting immense financial capability will be to focus on market niches which is usually a small subset of the market towards which certain product specification are targeted. In the context above, the arrival of foreign multinational in the market, this means a loss in market share, However, Local market can focus on the production of

feature specific bubble which is aimed at meeting the needs of a subset of the market and not everyone, so as to form a long lasting relationship with these subset of consumers. Products are designed to fit in the needs, price affordability and requirement of the market niche.