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Problem

A major U.S. electronics firm decides the best approach to a global business strategy is to employ a multi-domestic strategy. It will focus its efforts on China. Discuss some of the key threats the firm faces as it enters this market. How could it mitigate some of the risks associated with these threats?

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Multi-domestic strategy gives the decision making power to the local business firms in a country. These local business firms can produce products and services based on the requirements and need of the local customers. Thus the business firm is able to compete with the other competitors in the local market.

There are chances that the business firm has to face uncertainty because of the definite strategies followed by each country. The firm might have to decrease the cost of the firm as the firm has to follow different strategies in different countries. The multi- domestic firms do not need global strategy.

The cultural, administrative, geographic and economic dimensions help to identify the differences among different countries. These dimensions help to identify the competitors in foreign countries. All these enable the business to business manager to be prepared with the right strategy for each country.