The document presents an overview of multi-domestic strategy in strategic management, highlighting its focus on local responsiveness over global efficiency. It explains how companies adapt products and services to meet the unique preferences of individual markets, citing examples like McDonald's approach in India. While the strategy allows for flexibility and better customer satisfaction, it also incurs higher costs and complicates organizational structures.

1. Multi-Domestic
Strategy
I n t e r n a t i o n a l S t r a t e g i e s

2. A PRESENTATION ON
Multi-Domestic Strategy
Course Name: Strategic Management
Course Code: ADS 523
Presented By,
1. Sudipta Karmaker
2. Md. Khaled Mahmud
3. Shihab Shahriar Adib
4. Md. Faisul Islam
5. Mahadi Hasan
Presented To,
Dr. Shakila Salam
Associate Professor,
Institute of Agribusiness and development
studies,
Bangladesh Agricultural University (BAU).
Institute of Agribusiness and Development Studies
Bangladesh Agricultural University (BAU)

3. Multi-Domestic
Strategy
Sacrifice efficiency in
favor of responsiveness
to varying preferences
across countries.
Efficiency
Your Title Here
Responsiveness

4. Multi-domestic
Strategy
 A company operates in several countries independently
and adapts its products, services, and policies to local
conditions and preferences in each market.
 Also called as “LOCALIZATION STRATEGY”
 The main goal of this strategy is to respond to the
unique needs and demands of each individual country,
rather than applying a standardized approach across all
markets.

5. Barlett & Ghoshal’s
Model of Multi-
domestic Strategy
NESTLE uses a transnational strategy where some
products are available worldwide while others are only
sold in selected market
TABASCO uses a global strategy where minor or no
modification to products and services are made.
HEINZE uses a multi-domestic strategy where foods
are customized to be responsive to local taste
In multi-domestic strategy, Pressure of
local responsiveness is high where
pressure for global integration is low
TABASCO
NESTLE
HEINZE

8. • McDonald entered the Indian market through joint venture
with two local entrepreneurs.
• This clearly shows that McDonald focuses in local adaptability
rather than global integration.
• Most of the Indians are Hindus/Muslims/vegetarians ; as a
result, many of them do not eat BEEF / PORK.
• Therefore McDonald did not introduced beef/pork products to
INDIA.
• Instead, McDonald customized their menu to attract Indian
customers by introducing chicken and vegetarian based
burgers.
• Also to make products affordable to Indian customers ,
McDonald lowered their prices. McDonald’s multi-domestic
strategy
McDonald’s Multi-domestic Strategy

9. Characteristics
• Often used in consumer products and food industries
• Main competitive strategy is differentiation
• Wants to be perceived as local company
Advantages
• Flexibility: Allows companies to tailor products,
services, and marketing strategies to specific local
markets.
• Responsiveness to local conditions: Multi-
domestic companies can respond quickly and
effectively to changes in the local environment, such
as economic conditions, cultural differences, and
government regulations.
• Better customer satisfaction: By adapting
products and services to meet the specific needs of
each market, multi-domestic companies are more
likely to achieve higher levels of customer
Disadvantages
• Higher costs: Operating independently in multiple
countries can result in higher overhead costs, such as
marketing expenses, research and development costs, and
administrative expenses.
• Complex organizational structure: Maintaining
separate operations in each country can lead to a complex
and decentralized organizational structure, which can be
difficult to manage and coordinate.
• Reduced economies of scale: A multi-domestic
approach reduces the potential for economies of scale, as
companies cannot leverage common resources and
practices across multiple markets.

10. Thank You!