Question

Evara Cosmetics Inc. is a company that operates in 20 countries around the globe. The company clearly understands that the skin and hair type of customers varies from one country to another. Consequently, its products are customized to suit local needs and preferences of customers, even though the costs incurred while producing these products are exceptionally high. This strategy helps the company behave as a local firm in a foreign market. In this scenario, which of the following strategies is Evara Cosmetics Inc. most likely pursuing?
1. a multi-domestic strategy
2. an international strategy
3. a global-standardization strategy
4. a one-product strategy

Answer 1

Answer:

1. a multi-domestic strategy

Explanation:

A multi-domestic strategy is used by businesses to maximise local profitability in a society.

This is done by customising their products and marketing strategy to specific local needs.

It allows a business to compete favourably in various domestic markets.

In the given scenario Evra Cosmetics customized to suit local needs and preferences of customers, even though the costs incurred while producing these products are exceptionally high.

They are using the multi-domestic strategy to make a foreign company behave like a local one in the market.