Redesigning the Multinational to Compete Across Europe
Issue 1, 1994

One of the frustrations for European consumers is that they pay more than their U.S. counterparts across a whole range of goods and services. A computer that sells for $1,000 in New York may cost £1,000 in the United Kingdom. Compact discs, $12 or less in the United States, typically cost £12 or more. And Jeep Cherokees, now becoming popular in Europe, sell for 50 percent more than the U.S. sticker price. The reason is clear. Most businesses can approach the United States as a single large market, whereas in Europe, although the total population is bigger than that of the United States, businesses must contend with an assembly of individual smaller markets. Competition is less strong here, and less-efficient companies survive.