What is the term for a globalization strategy that allows subsidiaries to develop unique products based on local market needs?

The term "local responsiveness" refers to a globalization strategy that empowers subsidiaries to adapt their products and services to meet the specific needs and preferences of local markets. This approach recognizes the importance of understanding regional differences, including cultural norms, consumer behavior, and market demands. By allowing subsidiaries to develop unique offerings, businesses can enhance customer satisfaction and potentially increase their market share in diverse geographical areas.

In contrast, multinational enterprises refer to companies that operate in multiple countries but do not necessarily imply a focus on local market adaptation. Cultural adaptation emphasizes modifying products or services to align with local customs and beliefs, but it doesn’t specifically capture the broad strategy of tailoring entire product lines to local preferences. Global standardization, on the other hand, focuses on offering uniform products across different markets, which may neglect local market nuances that local responsiveness prioritizes. Thus, local responsiveness is key in addressing the demands of specific regions while fostering competitive advantages.