It means offering new kind of product or differentiated product. When product innovation fails to work, a firm may adopt product differentiation strategy. This is done through putting trade mark on the product or branding. Sometimes a firm may adopt different brands for different markets to make them suitable for local markets. Bata for example, operates in 92 countries under the same trade mark, while Uniliver‘s low - leather fabric washing product is marketed is market under five different brands in Western Europe.
Cost-Economic Strategy Firm-Specific Strategy
This strategy is done by lowering costs by moving the firm to places where there are cheap factors of production (eg. labor and raw materials). The cheapness of these factors of production reduces the cost of production and maintains an edge over another firm.
Joint Venture with a Rival Firm
Sometimes when a rival firm in a host country is so powerful that it is not easy for MNC to compete, the later prefers to join hands with the host country firm for a joint venture agreement and the MNC is able to operate the host country market.
Investment Mode Strategy
This strategy depends on the move of investment favored by the host country. It depends also on the political and economic environment of the host country. If the host government does not favor a particular mode, an investing company cannot adopt it even if it is the most suitable.