I think the polycentric approach used by Alpha is a good fit for their development. Providers can better follow the host country's market needs and develop strategies that yield the best results. They understand the local situation and have a deep understanding of how the country works to adapt their management style to the local culture and the aspirations of the people of the country. Since there are few contracts for local units or subsidiaries in this approach, operating costs are limited. These companies are also able to compete with local companies on a cost basis. Otherwise, most companies create markets through a differentiation strategy rather than a cost-centric strategy. But the downside is that these subsidiaries become highly localized and empowered and loosely tied to the parent company.
Hi Xin,
After reading your take on the case study, I also believe it is important to incorporate a mix of approaches to yield best results such as using the geocentric approach where mobility of talent is frequent and uses best strengths within the organization regardless of geographical location. It also allows equal opportunity regardless of the religion, nationality, race etc. for progress.
After reading your take on the case study, I also believe it is important to incorporate a mix of approaches to yield best results such as using the geocentric approach where mobility of talent is frequent and uses best strengths within the organization regardless of geographical location. It also allows equal opportunity regardless of the religion, nationality, race etc. for progress.