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Definition

Multidomestic Industries

Definition (1):

Multidomestic Industries are one in which competition is essentially segmented from country to country. Thus, even if global corporations are in the industry, competition in one country is depends on the competition in other countries. Examples of such industries include retailing, insurance, and consumer finance. In a multidomestic industry, a global corporation's subsidiaries should be managed as distinct entities; that is, each subsidiary should be rather autonomous, having the authority to make independent decisions in response to local market conditions.

Definition (2):

The term multidomestic is used to denote a set of strategies applied by organizations that function in multiple countries at a time. The most suitable definition of multidomestic industries are businesses that use a different approach in every market those operate in.

Definition (3):

“According to Makhija, Kim, and Williamson in a multidomestic industry virtually all company value-added activities are located in a single country.”

Multidomestic industries can include railroads, cutlery and hand tools, personal care, bedding, structural metal products, and furniture. Until recent time, a perfect example of these industries were the funeral industries which operated within countries. These simple global industries have limited or some external linkages, still having a focus on the domestic market.

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