Tthe advantages of not being global and having a local approach Essay

Tthe advantages of not being international and having a local approach - Essay ExampleThis paper illustratesthat in order to read the potential disadvantages of global strategy, compared to local strategies, it would be necessary to refer to the characteristics of global strategy, as identified in the key strategic decisions of firms operating in the global market. It seems that global strategy is highly differentiated from local strategies, not only in regard to its role but also in regard to its requirements and effects. In accordance with Tallman the global strategy can be characterized as the strategy, which needs to be established in case that a firm is interested in operating in the global market. It is explained that such strategy befriends the organization to align its operational rules and culture with those of the targeted market. Reference is made for example to the case of Haier, a study competitor in the Chinese manufacturing industry. The firm has essay to be estab lished in the USA market using a low-price policy. However, it was soon revealed that this policy, alone, would not help the organization to develop its presence in the particular market instead, a brand should be used for attracting the interest of local consumers. In accordance with the above, an effective global strategy offers the basis for the successful development of a firms presence in the global market. Thus, a global strategy should be related to specific policies, which are likely to be different compared to those included in local strategies (Lasserre 2007). This fact is made clear if the strategies used by both different firms for entering the global market are reviewed reference is made in particular to Philips Group of Holland and Japans Panasonic (Segal-Horn and Faulkner 2010, p.133). Before 1980s, Philips Group tried to develop its presence in the global market by focusing on the needs and the trends of each country however, up to then, global strategy was charact erized by the production of similar products for all countries which were promoted in markets globally using similar marketing strategies (Segal-Horn and Faulkner 2010) and only minor changes were made for aligning these strategies with local trends. As a result, Philips Group had to face significant difficulties and delays when trying to expand its operations globally. Panasonic, which aligned its policies with the requirements of