Which strategy focuses on using competencies from the home country in international markets?

Which strategy focuses on using competencies from the home country in international markets?

• A. Localisation
• B. Global integration
• C. Home replication
• D. Transnational

Answer: (C)

The strategy that focuses on using competencies from the home country in international markets is known as home replication. This approach involves taking the successful practices, products, and business models developed in the home market and applying them in foreign markets. Companies that adopt this strategy aim to leverage their existing strengths and competencies, allowing them to maintain a level of control and consistency in their operations abroad. By mimicking their home market strategies, businesses can capitalize on familiar processes and established branding, which can reduce the risks associated with entering new markets. This method is particularly effective for companies that have a strong competitive advantage or unique offerings that they believe will resonate positively in international settings. In contrast, localisation focuses on adapting products and services to meet the local needs of different markets, while global integration seeks to standardize operations across various locations for efficiency. The transnational strategy combines elements of both localisation and global integration, allowing for flexibility in one region while striving for efficiency globally. However, home replication specifically emphasizes the direct transfer and application of home country competencies to international operations.

The strategy that focuses on using competencies from the home country in international markets is known as home replication. This approach involves taking the successful practices, products, and business models developed in the home market and applying them in foreign markets. Companies that adopt this strategy aim to leverage their existing strengths and competencies, allowing them to maintain a level of control and consistency in their operations abroad.

By mimicking their home market strategies, businesses can capitalize on familiar processes and established branding, which can reduce the risks associated with entering new markets. This method is particularly effective for companies that have a strong competitive advantage or unique offerings that they believe will resonate positively in international settings.

In contrast, localisation focuses on adapting products and services to meet the local needs of different markets, while global integration seeks to standardize operations across various locations for efficiency. The transnational strategy combines elements of both localisation and global integration, allowing for flexibility in one region while striving for efficiency globally. However, home replication specifically emphasizes the direct transfer and application of home country competencies to international operations.