Question

Q1. if a company uses the local consumer culture positioning, what challenge they are facing and how to overcome it?  

Q2. If company B re-located its manufacturing to country C which represents the export market with the greatest potential for salesand would significantly reduce tariffs, manufacturing and freight costs and shipping times, thereby generating significantly larger profit. Explain why you would not recommend this re-location.

Answer 1

Q1. if a company uses the local consumer culture positioning, what challenge they are facing and how to overcome it?

If a company uses the local consumer culture positioning, there are many cultural challenges that the company has to face when it attempts to market its products in local market like different eating habits, different consumer dealings and different corporate culture. The company has to adopt the local characteristic in a product and it provides importance to the local test and preferences and company do lots of research and development work before starting its products to local markets. For example McDonald's international business strategy is to adopt many new products for its menu based on local test, for example Aloo Tikki Burger and Paneer Burger meals in India and that also at very competitive price because of economy of scale. They introduced the food in China which the Chinese people enjoy and re-designed the store based on their culture.