Question

Many brands that have gone global have found that international markets now comprise most of their annual increased growth. What are some of the challenges and advantages you see in developing and implementing a global brand strategy? Explain.

Answer 1

We can say that developing a global outlook and strategy has the following challenges as well as advantages:-

CHALLENGES

1. The need to create different business plans based on the differences in the market.

2. The fact that the need for risk diversification is created as well as the loss in the factor of familiarity for the company in a newer market.

3. “People” can be both an asset or a liability, based on how well the structure of management is applicable to the company’s functions.

4. Strategic confidence due to the fact that there is a need to rebuild a new customer base as well as how to implement a brand name in a country where it is almost unheard of.

ADVANTAGES

1. Expansion of the core customer base allows for a better implementation as well as advancement of the strategy used by a company even in the home country and the domestic market.

2. Greater access to talent and greater utilization of the present ones within the company due to the realization of having a better, more diversified workforce.

3. Diversifying the company’s market capabilities due to the fact that a company now focuses on a more diverse outlook of services and products rendered as well as gain the ability to handle any sudden shifts as and when necessary, especially in a volatile market.

4. A company implementing a global strategy essentially works with a larger set of variables than having a domestic business outlook and strategy which in simpler terms can mean that they can more easily utilize cost reductions, heighten customer awareness as well as the gain stronger perspective of competition in the market.