How Far Should Global Products Go?

Some authorities in international business have suggested that international markets are becoming increasingly homogeneous, causing more firms to offer global products. Vachani and Wells based on a study of the product decisions of Indian subsidiaries of five multinationals argue that there remain important consumer segments that have special needs which are not met by global products. According to Vachani and Wells, decisions of multinationals and local firms to cater to the special needs of various consumer segments in developing countries depend on four variables: the structure and competitive conditions of their industry segments, the ability to use their traditional competitive advantage in different segments, the ease with which their usual product lines can be extended into new segments, and the availability of more special products elsewhere within the multinational enterprise.