February 28, 2010

Global Business Strategy Number 4: Decentralization

If you want to create a market-driven strategy, you must decentralize your management, distribution and your marketing. By decentralization we mean that you have to create specific offices in each country where your business is operating. Each office in each region must have the control on marketing and product management.

The main goal here is to release the product in the market and make sure that each consumer can relate to the product, and there is no other way to make the products relevant to the consumer than to let the people on the region manage on the production. They know their culture better and they know what their people want, so you should leave this up to them. It is not easy to craft the product and target the consumer in a particular region if the decision came from the central office.

Through decentralization, you can take advantage on the expertise of your local office. You can achieve local success through this. Decentralization strategy is a must for the products that require high level of support.

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