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Problem

A supplier of copper tubing and wire has adopted a multi-domestic strategy to enter the eastern European market. What factors should it assess in these countries in order to formulate its marketing strategy in each one. Explain.

Step-by-step solution

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Step 1/2

Multi-domestic strategy allows the firm to start business in another country. By using multi-domestic strategy, the products developed can be developed in the local market and given to the customer.

The factors that are to be assessed are the cultural, administrative or political, geographical and economic factors of a country. Every country has a different culture. It is important for the company to look into the culture of each and every country. Every country has a different administration and political scenario. Certain countries encourage businesses whereas certain countries have their own restrictions.

Step 2/2

The geographical condition of a country should be taken into consideration. Before entering the market the company should know who the users of the product would be. The last factor is the economic status of the country.

Every country has a mixed population. The requirements of the people are also different. Some people would be ready to spent lot of money on their needs whereas there are people who spend only for their necessities. Based on the economic criteria the product’s pricing strategy should be decided.

Therefore, by looking into all these factors the strategist would be able to understand the differences between countries.