Which strategy involves adapting products to meet local market needs?

The strategy that involves adapting products to meet local market needs is the multidomestic strategy. This approach emphasizes customization and local responsiveness, allowing businesses to tailor their products and marketing efforts to suit the unique preferences, cultural nuances, and regulations of each country or region they enter.

In a multidomestic strategy, companies often operate in multiple countries but treat each market as a separate entity. They focus on understanding local consumer behavior and market conditions, which enables them to modify their offerings appropriately. For example, a fast-food chain might adapt its menu in different countries to cater to local tastes or dietary restrictions, thus ensuring greater acceptance and customer satisfaction.

This strategy contrasts with a global strategy, where businesses standardized their products across all markets to capitalize on economies of scale. A transnational strategy seeks to balance global efficiencies with local responsiveness but does not focus solely on adapting products. Meanwhile, an international strategy typically involves exporting products without significant adaptation for local markets. The multidomestic strategy stands out for its strong emphasis on local adaptation.