The polycentric approach adopted by Alpha is well-suited for their growth. This strategy allows them to tailor their offerings to meet the specific needs of the host country's market, maximizing their effectiveness. By deeply understanding the local dynamics, they can adapt their management practices to align with the local culture and aspirations. Moreover, the decentralized nature of this approach helps in controlling operating costs, as there are fewer contracts for local units or subsidiaries. This enables them to compete effectively with local companies on a cost basis.
However, one drawback of the polycentric approach is that it can lead to highly autonomous subsidiaries that are less integrated with the parent company. This may result in a lack of cohesive global strategy and coordination. Despite this challenge, Alpha's adoption of the polycentric approach seems to be driving their success in international markets.