Advantages of
“think global, act global”.
- Can achieve lower costs due to scale & scope
economies.
- Can help the companies to achieve efficiencies as it has the
ability to transfer the best practices across markets.
- As there is knowledge sharing & capability transfer, it
increases the ideas & innovation of the company.
- It increases the reputation of the company because of its
global brand presence.
Disadvantages:
- It can’t be easy for the company to understand the local needs
of the people & act immediately.
- It would be less responsive to changes in local market
conditions.
- The company has to spend more on transportation, tariffs
etc.
- Has to incur higher coordination & integration costs.