More importantly, you can market to your overseas customers using social media platforms and your website content, which cuts down on marketing expenses. Note that Professor George Yip argues that the business case for Advantages and disadvantages of global strategy is strengthened by competitive pressures: Consequently, it becomes imperative on the part of retailers to assure the quality of imported goods through insurance, agreement with vendor or otherwise.
Whereas, its main strategies in Europe have been partly through wholly-owned ventures and partly through co-operation with other European car companies on some joint production. The real issue for many companies is what decisions are treated globally and what locally. No one is ready to leave his own country but if somebody does, the reason is domestic compulsion.
In the years to come, these IPOs may grow up to giant procurement agencies with whole range of buying and category formats. Lack of sensitivity to local demand: Like Free Trade Zone is an area within a country where no taxes are applicable with regard to storage, inspection, packaging, assembly, fabrication or exhibition.
Buying merchandise from abroad is full of complexities. Increased Visibility As your market expands, so will your visibility. For example, a dairy company might sell some of its excess milk and cheese supplies outside its home country. These examples particularly relate to low cost country specific sourcing but the scope and definition of global sourcing is not limited to low cost nations.
Diversifies Your Business When you tap into an international market, it helps to offset any losses that you might suffer during an economic downturn on the domestic front.
Apple iPods are made in China with the Chinese company manufacturing to the Apple specification. Other writers argued that there could be costs in adapting products to match local tastes, local conditions like the climate and other local factors like special laws on environmental issues.
Political or societal changes can cause business upheavals overnight, so you need to constantly monitor activity or pay someone to do so on your behalf. One of the basic decisions in global strategy begins by considering just how much local variation, if any, there might be for a brand.
Benefits of a global strategy The business case for achieving a global strategy is based on one or more of the factors set out below — see academic research by Theodore Leavitt, Sumanthra Ghoshal, Kenichi Ohmae, George Yip and others. Currency risk arises due to change in price of one country with respect to another.
Crisis Management Crisis management is important to any company but is more challenging on a global basis.
It does not use its Lays brand name in the UK, but employs Lays in much of the rest of the world. Domestic retailers look global sourcing not only for lower costs, but also to improve quality, prompt deliveries and develop innovations to keep them a step ahead of their competitors.Q1.
Discuss the advantages and disadvantages of standardization strategies and adaptation strategies in a global environment. Standardization is the process by which a company makes it methods, especially its production processes, uniform/identical throughout its organization.
If you currently have a global demand or can create one for your product or service, it may be worthwhile to consider a global marketing strategy. Plan carefully to ensure the advantages and benefits outweigh the disadvantages and risks.
Strategic Alliance in Business: Definition, Advantages & Disadvantages Chapter 4 / Lesson 11 Transcript Video. May 06, · Supporters of globalization have made the case that it is good because it has brought low priced imported goods, but they have not matched the decline of wages in the middle class and will not offset the loss of many family wage jobs.
Globalization is like being overwhelmed by a snow avalanche. form all activity’s sectors, presents some Through their objective of extending the advantages for all participants to global market sales, companies encounter barriers market. The most important advantages regarding their products’ adjustment to the are: new environment.
Advantages and Disadvantages of a Marketing Strategy What Is the Difference in Global Advertising & International Advertising? Pros & Cons of Differentiation Strategy.Download