Question

Discuss how a multinational firm might use a low-cost strategy in one country while using a...

Discuss how a multinational firm might use a low-cost strategy in one country while using a differentiation strategy in another country.

Homework Answers

Answer #1

Companies like Vodafone adopts low cost strategy in India due to perfect competition and cutthroat price wars making it low cost player.

However in Europe it provides premium prices with differentiation in services and ubiquitous offers across 2G, 3G, 4G and 5G services.

Its possible to adopt both as in India it adopts merger acquisition route, economies kf scale and customer penetration as key traits to be low cost while in Europe it focuses on customer experience and service quality, Kaiszen principle and efficient productivity.

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