Do local firms have a competitive advantage over multinational enterprises?

Abstract

This study describes the factors that drive competitiveness between local firms and multinational enterprises (MNE) in a retail consumer market of an emerging country. It also seeks to identify the approaches and strategies the competitors consider and adopt to maintain the advantage in the consumer market.The objective of this study is to identify the factors local firms and MNE’s will consider when competing with each other. The study also wants to identify the preferred mode of entry of MNE’s.The study will be a quantitative study where relationships between competitors and their performance in the market are measured.The results revealed that local firms do have a competitive advantage over MNE’s in the retail consumer market due to the local firm’s knowledge of the market, rather than the technology and skills. It’s also clear that MNE have a preferred mode of entry and they chose to compete in the industries where they are stronger than the local firms.