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Global and Local Company

Autor:   •  October 29, 2011  •  Essay  •  882 Words (4 Pages)  •  1,448 Views

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World as we know it has been supported by economic field. Without economy, world cannot survive. Economy studies produced countless companies in the world in different field. The number of companies are still rising from year to year caused by needs of humanity is increasing. For example, Apple Incorporation, a company produces various products such as MacBook, iPhone, iPod, etc. This company was arisen as a result of needs of better performance and quality of existing products. But, many companies were arisen from different reasons. Today, we can define two types of company in general based on their size and target market. The types are global company and local company. Global company, from its name, has showed that its size is bigger than local company which is smaller. Target market aimed by global company is worldwide customers. Rather than worldwide customers, local company only target smaller size of market (country). This is only general differences. But, there are many contrasts between global company and local company in many ways; some of them are in terms of production, marketing and management.

If we talk about production, global company has different principles, so do local company. Products manufactured by both global and local company come in many types, except for some companies (F&B). Global company whose target market is worldwide people has to produce more of its products because its products’ demand is high. It will do more research and development to produce other/improved products, so it gets customers’ attention constantly. Some big companies open the factory outside their country to distribute products efficiently and to cut cost of distribution. But, different principles are applied to local company. Since the target market is only small like local/regional people, local company will produce its products in small amount, according to local demand. As local company lives around local people, it knows what happen around there, their habit, needs and so on. This causes the company can produce new products based on its environment, but it still need to do research and development. Because of small target market (country), local company should not open factory outside its country as it will be considered as committed suicide.

Marketing strategy used by will be different in many ways if it comes to global and local company. For example, promotion or we call it as advertisement. Global company, if it wants to attract customers in huge amount, it will use many types of mass media as possible. It can be internet, electronic, printed, etc. We take AirAsia as an example. AirAsia is an airline operator that provides flight around South East Asia and some other


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