Many companies are selling More and more products around the world. Do you think this development is advantageous or disadvantageous?
Several companies nowadays are much interested in expanding their footprints globally, not only to outpace the increased competition in the local market but also to search for newer opportunities to cater to underserved communities around the world.
The most obvious benefit of going global is the rise in the revenue chain a company generates from multiple markets, which directly contributes to achieving higher growth and profit. Having secure elevated revenue stream, firms may invest in new product development, meaning many more relevant products would be available for customers to choose from. Organizations, which serves a wide range of markets, generally set up their innovation centre locally to create innovative products suitable for locals. For instance, my current firm, Philips Healthcare, has tapped into more than 40 countries, and it manufactures products locally to serve the local market efficiently.
Nevertheless, companies often face major challenges such as cultural differences and language barriers while entering into a new market or country. While corporates are eager to capture untapped potentials, it is vital for them to learn about a given nation’s culture to be successful. Efficient communication could be another drawback because of a language issue. Companies sometimes may have to hire professional translators to outreach their premium customers. One of my close friends is in the business of selling raw materials to China for manufacturing medical types of equipment. A translator was much needed and finally hired for having seamless business operations in unknown territory.
In conclusion, when it is inevitable for any business to thrive, sustain and create its image on a global platform while addressing the requirements and needs of a local market, a multinational organization must consider various cultural and language concerns to unleash maximum gain and serve needy societies.
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