What is one goal of local firms in competing against larger MNEs?

What is one goal of local firms in competing against larger MNEs?

• A. To decrease workforce size
• B. To enhance competitive advantages
• C. To avoid any international engagements
• D. To rely solely on government support

Answer: (B)

One of the primary goals of local firms in competing against larger multinational enterprises (MNEs) is to enhance competitive advantages. This involves leveraging unique strengths that local firms possess, such as better understanding of local market needs, cultural nuances, or specialized knowledge in specific areas. By focusing on enhancing these advantages, local firms can differentiate themselves from larger competitors and carve out a niche in the market. This strategy may manifest in various ways, such as offering customized products or services that cater specifically to local preferences, adopting innovative business practices that resonate with local customers, or building strong relationships with the community, which larger MNEs may overlook. Ultimately, enhancing competitive advantages allows local firms to position themselves effectively against bigger players, helping them to maintain market share and grow despite the challenges posed by larger competitors.

One of the primary goals of local firms in competing against larger multinational enterprises (MNEs) is to enhance competitive advantages. This involves leveraging unique strengths that local firms possess, such as better understanding of local market needs, cultural nuances, or specialized knowledge in specific areas. By focusing on enhancing these advantages, local firms can differentiate themselves from larger competitors and carve out a niche in the market.

This strategy may manifest in various ways, such as offering customized products or services that cater specifically to local preferences, adopting innovative business practices that resonate with local customers, or building strong relationships with the community, which larger MNEs may overlook. Ultimately, enhancing competitive advantages allows local firms to position themselves effectively against bigger players, helping them to maintain market share and grow despite the challenges posed by larger competitors.