Question

In: Economics

In your words, explain if the following industries are global or multidomestic industries: Bulk chemicals, pharmaceuticals,...

In your words, explain if the following industries are global or multidomestic industries: Bulk chemicals, pharmaceuticals, branded food products, movie making, television manufacture, personal computers, airline travel?

Solutions

Expert Solution

GLOBAL COMPANIES: A global company is one who assumes the consumers in all the countries same and does not differentiate the product ie the same product with same specifications is sold in the enitire world.

1) BULK CHEMICALS : These are the companies offering chemicals like natural gas, petroleum etc, these type of companies are definitely the global companies as they are sold in every country irrespective of the nature of customers.

Eg : Natural gas is required in every country and no change is to be done in natural gas for different countries.

2) PHARMACEUTICAL : It is also a global company as each and every pharma produces the medicines according to the availaibility of disease and they have nothing to do with the different countries.

Eg: Glenmark pharma is going to produce the same medicine for arthritis no matter which country demands the medicine.

3) TELEVISION MANUFACTURE : It is a global company because their is no seperate need of the customer with respect to television.

Eg: Samsung is a company which manufactures same kind of televisions for each and every country and there is no difference on the basis the customers available.

4) PERSONAL COMPUTERS : A company making PCs is also a global one as they prepare the product considering the technology and the advancement . Each and every country requires the same specification .

Eg : Dell has number of PCs but no PC is differentitate don the basis of country , the same PCs are delivered in the entire world.

5) AIRLINE : The airline is also a global one as the same airline offers same facilities to each and every customers and nothing is differentiated.

For eg: Spicejet is an airline company which handles international as well as national flights but the facilities offered are same to everyone.

MULTIDOMESTIC COMPANIES : A company is said to be multidomestic if it does business in multiple countries but the marketing procedures are different in each and every country and  they market according to the type of customers residing in that particular country.

MULTIDOMESTIC INDUSTRIES ARE :

1) BRANDED FOOD PRODUCTS: The industries offering branded food products are considered global because they do operate in each and every country but the technique of marketing is different .

For eg : Macdonalds is a global company operating in every corner of world but with a different method like a hamburger is sold in sold in few countries only that is is is include in the menu of some countries and is removed form the menu of some.

2)MOVIE MAKING: A production house is definately a global inustry as not every country has the same level of understanding the same language, some countries might understand english but some might not be very fluent with english, so the movie makers have to decide the most fluent language of a country and release the movie in that particular language.

Eg: Marvel studios is a movie maker industry but is releases the sam emovie in different languages in different parts of the world be it english, hindi, spanish etc.


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