Definition of MNC & Competitive advantages
MNCs are recognized as the main actors of e international business, International business financing and global economies. According to Ghoshal and Bartlett, MNC is a firm that has substantial direct investment in foreign countries that it actively manages.
A multinational corporation takes a worldwide view of markets and production, in other words, it’s willing to consider markets and production locations anywhere in the world (Daniel & Radebaugh 2012, p.63). Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. Very large multinationals have budgets that top those of many small countries. There are Many MNC’s businesses in Bangladesh like Telenore, Orascom telecom (Banglalink),
Airtel, Coca-Cola, PepsiCo, KFC and HSBC.
An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition is simply known as competitive advantage. Competitive advantages give a company a boundary over its rival and a capability to generate greater value for the firm and its shareholders. (http://www.investopedia.com).
To gain competitive advantages MNC’s had to come up with an effective competitive strategy. A successful strategy takes one of two approaches: Developing a favorable brand image, developing unique characteristics (Daniel&Radebaugh2012, p.66). There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network, competitors market and customer support.
High-level Of Local Responsiveness& Adaptation:
People in different countries have different attitudes, choice, tastes, preferences, values etc towards certain thinks, based on their culture, environment, custom, and religion. Local responsiveness is a strategy used by firm typically MNC, when they...