What are the benefits to going global?
Benefits to Going Global
There are many benefits for entrepreneurs participating in global business activities. We group them in three categories: strategic, financial, and production related.
Examples of strategic benefits are: enhancing domestic competitiveness, reduction of dependence on existing markets, capitalizing on the growth potential of the new country market and neighboring countries, protecting foreign markets, stretching and building marketing capability, global brand building and awareness, finding new talent, and transferring competitive information and new product ideas from those markets to other markets, or what we call “learning local and share global” activities.
Examples of financial benefits include: finding new customers, increasing profits and sales, earning a greater return from set of core competencies, increasing the universe of potential investors, capitalizing on tax advantages, and minimizing impact of seasonalities in local markets.
Production-related benefits include: guaranteeing supply of raw materials, acquiring technology and R&D capabilities, cutting costs through global outsourcing, improving purchasing power for customers buying locally, realizing greater experience curve economies in production, extending lifecycle for current products or services, and selling excess production capacity.