From the course: Global Strategy
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Why go global
- The development of your company's global strategy must begin with clarity about why you want to go global. This clarity is important because globalization is a double-edged sword. It can enable a company to grow, to capture the benefits of bigger scale and better locations, and to provide coordinated service in many locations to global customers. However, globalization also increases the company's fixed costs and exposes it to greater complexity and greater uncertainty. Thus, globalization should not be pursued unless the potential benefits are likely to be greater than the potential costs and risks. Clarity regarding why you want to go global also has direct implications for the design of your global strategy and your global organization. Globalization has the potential to yield four major benefits. The most obvious benefit is that global expansion can help the company grow at a faster pace than it otherwise…
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