What Companies Gain by Going Global
By Hazel M. Tolentino
Neil Kokemuller, a college marketing professor and regular featured writer for LiveCharts, wrote an article on the advantages of companies going global. In his piece, he discussed four major advantages of companies who go beyond local opportunities.
More Revenue Streams
First, global companies have more revenue streams. They are able to broaden their sources of revenue and generate more business because they expand their customer base. Thus, even if they have already saturated their domestic market, they can still enjoy increased revenues from the new customers they cover.
New Supplies and Resources
Secondly, along with more businesses coming in, global companies are able to gain access to new supplies and resources by forming strategic alliances around the globe. New relationships and suppliers strengthen the global brand, leading to synergy. Likewise, there is a tendency that potential business partners and prospects will think highly of a company with international presence.
The third advantage of companies going global is market development. When a certain area or region encounters a natural disaster or similar unforeseen events, companies who have expanded globally would still be able to diversify into other markets with more stability. According to Kokemuller, market development will provide a certain level of insulation from countries or regions undergoing slumping performance. Thus, if the economy, supply issues, environment or government regulations in one country have a negative effect, there is still an opportunity to be successful in other countries.
Larger Talent Pool
Lastly, global companies have a bigger talent pool, in large part to teams around the globe that can virtually connect and collaborate, overcoming the distance barrier. With such networks, everyone is given an opportunity to move to different places and handle diverse projects. Furthermore, there is access to find potential candidates that are hard to discover in one’s home country.
Despite these advantages, we cannot deny that there are still disadvantages in going global. Hence, local companies should understand the reality that going global will require serious authority and a sound strategy to further equip their respective organizations with the needed experience, facilities, and networks. Certainly, this is a global truth that will inevitably affect us in one way or another.
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About the author:
Mary Ann Hazel M. Tolentino is a Sr. Supervising Recruitment Consultant for Professional Staffers, a division of John Clements Consultants, Inc. She has 20 years of professional experience in human resource management with a strong background in talent search and recruitment. Her 11 years of experience with John Clements gave her an opportunity to handle job search requirements of clients from different industries such as consumer, direct selling, healthcare, manufacturing, pharmaceutical, and most recently, with information technology. Hazel is married with three wonderful children.