Question

Today and in the future, do you think it is important for a firm to think globally but act locally?

- a question from my principles of marketing class

Answer 1

Today,"' Globalization' stands out for a population scattered throughout the world as one of the defining words of contemporary society" and businesses in general, and large multinational corporations in particular are gaining advantages by selling their products and services worldwide.
Furthermore, since "national economies, with some exceptions, are now much more deeply embedded in global production and trade structures than in previous historical periods, while few states remain excluded from global financial and economic markets following the collapse of state socialism"

Competition on the global marketplace, however, varies in a number of ways from competition within the borders of a single market. Such geographical variations are primarily caused by regional differences associated with each individual market that can produce both advantages and disadvantages of entering a new market. ' Think Globally, Act Locally ' methodology, as the name implies, refers to the strategy implemented by some multinationals, according to which international views are embraced in terms of formulating corporate vision, long-term goals and objectives, and in order to achieve these goals and objectives, adjustments are made in each market according to culture and specifications of any specific market.

If any multinational company tries to adopt the same strategy to all markets, even if that specific strategy was the source of competitive advantage in some markets no provision would be made for local differences of above specified nature, and this can lead to customer misunderstandings, even contradictions or anger in some extreme cases, and ultimately to failure of the company in that specific market.Thus, the "Think Globally, Act Locally" approach is being implemented by a growing number of multinationals as well as medium-sized companies planning for foreign market expansion that allows companies to plan for an intensive foreign market entry strategy while at the same time satisfying local customers in each market they operate by developing and implementing strategies