Some examples of multidomestic corporations are Coca-Cola, Wal-Mart, Honda and Nestle. There are also many examples of small- and medium-size multidomestic companies. Multidomestic companies localize their products and services, so the products and services sold in various countries are tailored to the consumers in each country.Continue Reading
A multidomestic company uses a unique marketing and sales approach for each of the markets in which it operates. The company chooses its markets more carefully for individual products and then focuses on those products in those areas so the company can maximize its competitive advantage.
A multidomestic company tends to be more decentralized, enabling the management in each country to operate with some degree of autonomy so management can adopt business practices more appropriate to the local economy. Multidomestic companies therefore tend to be more flexible and more capable of adjustment. Smaller, technology-based companies can compete with the corporate behemoths for multidomestic sales.
With the advent and rapid spread of the Internet, improved telecommunication fiber optics and mobile technology, multidomestic business sometimes can be as easy as the click of a mouse or push of a keyboard button. It is more difficult for smaller companies to coordinate all the actions of their various departments due to their limited resources, so multidomestic business practices are sometimes a matter of necessity.Learn more about Corporations