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A multi-domestic strategy is a strategy by which companies try to achieve maximum local responsiveness by customizing both their product offering and marketing strategy to match different national conditions. Production, marketing, and R&D activities tend to be established in each major national market where business is done.
An alternate use of the term describes the organization of multi-national firms. International or multinational companies gain economies of scale through shared overhead, and market similar products in multiple countries. Multi-domestic companies have separate headquarters in different countries, thereby attaining more localized management, but at the higher cost of forgoing the economies of scale from cost sharing and centralization.
References
- Kihn, Lili-Anne (15 December 2008). "Strategies, Decentralization, and Controls in Internationalized Finnish Firms". SSRN 1315410.
{{cite journal}}: Cite journal requires|journal=(help) - Roth, Kendall; Morrison, Allen J. (29 April 1992). "Implementing Global Strategy: Characteristics of Global Subsidiary Mandates". Journal of International Business Studies. 23 (4): 715–735. doi:10.1057/palgrave.jibs.8490285. JSTOR 155156. S2CID 167306509.