Centralised or Decentralized International Market Strategy

Today, centralised and decentralized marketing strategies are mainstream developments in the modern business environment. Many companies functioning internationally tend to use either centralised or decentralised online marketing strategy, among which it is possible to name such renowned brands as Coca-Cola and Fanta. At this point, it will probably be worth mentioning the actual fact that both international marketing strategies work enough but their success depends on the business environment and context in which either strategy is introduced by the company. Actually, the execution of centralised and decentralised international marketing strategy depends on a corporation and its business environment as well as policies conducted by the company in regard to its product, price, campaign and host to introduction of the product along with consumer behaviour and competition in the industry.

In truth, centralised international online marketing strategy has its advantages as well as cons compared to decentralised marketing strategy (Newel, 2001). First, it is worth mentioning the actual fact that centralised international marketing strategy allows a firm to accumulate its financial and human resources and spend them into the development of 1 global brand, which is renowned internationally. In this respect, you'll be able to refer to the knowledge of Coca-Cola, the business, which includes created an effective international brand and supports the primary position in the beverage world market. Actually, Coca-Cola centered on the centralisation of its businesses and creation of the consolidated brand, which became renowned worldwide. As a result, the company has the worldwide network uniting processing facilities and syndication network. In this respect, the business has became successful in the implementation of the centralised international online marketing strategy.

At once, it is worth mentioning the actual fact that centralised international marketing strategy has a number of disadvantages. To begin with, the utilization of the centralised international marketing strategy deprives the business, such as Coca-Cola of the versatility in local market segments. What is recommended here is the fact that the business cannot adjust to local business environment and, therefore, the business may fail to adjust to needs of local customers. In this respect, the Coca-Cola imposes its brand and its own drink on customers by using the energy of its brand. Consumers choose Coca-Cola since it is an international brand renowned worldwide and popular worldwide. Alternatively, beverages produced by Coca-Cola tastes similarly in any part of the world. Because of this, the business cannot offer original products adapted to tastes of local customers.

In addition, centralised international online marketing strategy deprives companies using this strategy of flexibility. They can not change their products fast respectively to changing preferences of customers (Mohrman, 1998). For example, some products may become more successful than others but companies using centralised online marketing strategy have a limited choice of products to introduce en masse.

As for companies using decentralised international online marketing strategy they can use the full benefit of their strategy in comparison to companies using centralised marketing strategy. To put it more exactly, companies using decentralised international online marketing strategy concentrate on the development and advantages of products for specific markets. Often companies using decentralised strategy develop specific brands for local marketplaces, where they are simply renowned and popular and which meet needs and would like of local customers (Masterson and Picton, 2004). In this respect, it will probably be worth mentioning Fanta, that has proved to be quite successful in European market and come to a significant success within the EU. On the other hand, this brand is badly known in America or Asia for illustration. In that situation, the company expanding the decentralised international online marketing strategy targets the introduction of other brands for other markets, such as Kuat in Brazil. In such a way, the business using decentralised international online marketing strategy becomes glocal, i. e. global company has the local focus. Quite simply, the business uses the neighborhood focus, while functioning worldwide offering local markets specific, original products that meet the most needs and would like of local customers.

On the other palm, decentralized international marketing strategy has some negatives. To begin with, this strategy needs substantial money because the introduction of original and different products in comparison to companies using centralised international marketing strategy. The last mentioned invest in to the development of one product which is sold worldwide, whereas companies using decentralised international marketing strategy have to build up multiple products that require more money (Volti, 2003). In addition, decentralised international online marketing strategy needs comprehensive control over the quality of products manufactured in different parts of the entire world.

Thus, considering all above mentioned, it's important to place focus on the actual fact that the introduction of centralised and decentralised international marketing strategies can be effective on the health of their effective implementation respectively to business environment in which companies operate. Actually, centralised international online marketing strategy is relatively cheap and, thus, affordable. Alternatively, the benefits of centralised international marketing strategy makes companies inflexible as opposed to decentralised marketing strategy. Furthermore, decentralised international online marketing strategy allows companies to conform its products to specific marketplaces. However, decentralised international online marketing strategy is not affordable.

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