Yet the relevance of this liability of foreignness is waning in the contemporary environment where iconic global brands thrive and command premium value (e.g., BMW, Cadbury, Cisco, Godiva, IKEA) in the global marketplace.
To offset such inherent disadvantages, multinationals must invest in brands that cater to universal needs that exploit their global capabilities. They also need to employ appeals that are shared by consumers everywhere such as quality and safety.
Whether it is Toyota in automobiles or Shiseido in cosmetics, these appeals are treasured universally.
Yet the relevance of this liability of foreignness is waning in the contemporary environment where iconic global brands thrive and command premium value (e.g., BMW, Cadbury, Cisco, Godiva, IKEA) in the global marketplace. To offset such inherent disadvantages, multinationals must invest in brands that cater to universal needs that exploit their global capabilities. They also need to employ appeals that are shared by consumers everywhere such as quality and safety.Whether it is Toyota in automobiles or Shiseido in cosmetics, these appeals are treasured universally.
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