Advancements in technology have led to various opportunities for local brands to go global by means of standardization. But with the fast-paced world we live in where the customers are the boss and the global companies are the lions that eating up the entire market share, in contrast, local brand are only gazelles struggling to survive. But will their entrant to the global scene ensure their survival? Or will they flop like most of the other companies? This essay aims to extract why the global companies fail and how they survive and compete.
The ability of a firm to enter the global scene doesn’t necessarily equate to success. Various factors and considerations are to be considered. According to an article by Douglas Holt, John Quelch and Earl Taylor “Global brands usually compete with other global brands”. It basically says that to succeed companies must strive for superiority on basics like price, performance, features and imagery.
Consumers’ understanding of global brands is generally restricted to that of the media and the decease-like discussions, posts and reviews that spreads over the internet. That is why companies should think global. Smart companies manage their brands like global symbol according to Holt, Quelch and Taylor. However, companies should be careful because people are either astonished or disturbed by this. And with that companies should monitor those perceptions constantly.
Customers are still customers. Based on a Harvard Business Review “13% of consumers are skeptical that global brands deliver higher quality goods” that is why most companies are unsure how to treat customers who dislike them. However, they are still customer and besides few business are in the position to ignore such a large number. Companies must focus on earning their trust by focusing on them as unsatisfied customers. But that can only happen if the firms are willing to invest on them.
Having stated how global companies compete and fail, we now have a better glimpse of what might happen to global companies especially those who are typically new to the global scene. The success of these global brands greatly depends on how they handle the basics, media and their customers. Should the companies fail to comply with these, It doesn’t necessarily follow that the company will fail. Rather, it has a greater chance of failure.
-End-
CJ 