The domestic territory is a territory that a business owns and does not need to compete with other businesses for customers.
It can be in a town, state or country.
The domestic territory is usually one that has been around for years and people are used to seeing the products of some company or brand on the shelves.
This gives that company an advantage over other companies in that they have explored and developed their product or service and know there is a potential customer base.
Small Entrepreneurial firms have a short value chain and often depend on a Local supply base, with local procurement and production of other inputs like business services.
Large firms have longer value chains in general, multiple foreign affiliates and subsidiaries that produce inputs locally and sell their products in the domestic markets.
Final answer:
The domestic territory is the marketplace or trade area where the firm exerts influence and where it can cover its costs.
It is a concept used to define a firm’s ability to serve customers; it is always relative to the field of rivals.
The domestic territory is usually one that has been around for years and people are used to seeing the products of some company or brand on the shelves.
This gives that company an advantage over other companies in that they have explored and developed their product or service and know there is a potential customer base.
The Domestic industry may also be referred to as the home market, regional market, local market, or national market.
Small Entrepreneurial firms have a short value chain and often depend on a Local supply base, with local procurement and production of other inputs like business services.
Large firms have longer value chains in general, multiple foreign affiliates and subsidiaries that produce inputs locally and sell their products in the domestic markets.