Local vs Global

Companies are confronted by two types of pressure: the global efficiency and achievement of a local sensitization facing the different national markets. The pressures linked to the efficiency and which incite to the coordination and global integration of activities can be grouped together in four categories: market, cost, competitive and governmental. In the market pressures, we can distinguish the homogeneity of needs, the importance of customers and the chain of global distribution, the existence of a transferable marketing between countries. The cost pressures are manifested on the economies of scale, the experience, the supplying needs in specific areas, a successful logistic, the cost differences between countries and the high cost of the product development. The governmental pressures can be the existence of a favorable commercial politic, the standard techniques between countries, common regulations of marketing and the governmental intervention in the sector. Finally, there are two fundamental competitive pressures: a big volume of international trade and the existence of competitors that pursue global strategies by creating interdependent links between countries. Concerning the pressures that oblige companies to seek an adaptation to the conditions of each country can be provoked by different factors. There are the divergences in customers needs, differences in the distribution chain, the presence of local substitution products, the need to adapt the infrastructure or the traditional practices of the country, a market structure where the local competitors hold a significant market share and/or they are not concentrated, and the governmental condition.