Small local partners refer to business units that operate at small scale business operation compared to large local partners which operate at large scale business operation.
Advantages and disadvantages of small local partners over large local partners
Small local partners are advantageous to large local partners because they link large international companies to the local consumers of their products. They satisfy customers’ needs by providing goods and services to them. They also offer public relations services to the customers hence enhance the mutual understanding between the organization and its immediate publics (Wasserman & Gale Research Company, 1970). It is quite an advantage to the main company because it does not undergo the procedure of marketing their products to the local consumers because the small local partners carry out the process.
The small local partners also carry out the corporate social responsibility of the company by promoting the image of the organization. It is therefore important to know that the small local partners are important compared to large local companies because they reach the small markets with big population. One of the disadvantages of using small local partners over large local partners is market complexity (Owens, 1954). This means that the chain of distribution becomes extended hence the desire for high profile coordination system. It is also vital to note that the small local partners may not be able to raise the required capital to promote the image of the organization at the local market.
Are there countries where Microsoft’s strategy might not work?
It is beyond doubts that the marketing and networking strategies used by Microsoft allows it to fit in any marketing structure of any company. This is because it involves both large and small local partners in its business system hence the market dynamism (Longenecker, 2008). This kind of business networking enables organization’s products to be distributed to different market segmentation. This is therefore a clear indication that Microsoft’s strategy can be effective in any country.
What other kinds of businesses might find Microsoft’s strategy to be effective
There are also other types of businesses that can definitely find Microsoft’s strategy to be effective. A good example is a restaurant business. For example, the Mc Donalds operate using this kind of strategy in their marketing management process. They sell franchise to the large and local partners in the local markets hence promote the image of the organization in the local areas.
How might Microsoft need to change its strategy once it has established a strong position in a foreign market?
Once Microsoft has established a strong position in foreign market, it is significant for it to change its strategy in order to maintain its position in the market and even improve its image (Freeman, 1984). Microsoft is therefore supposed to look forward to creation of a better image by improving its corporate social responsibility in the foreign market.
How might host governments react to Microsoft’s entry strategy?
Host governments are likely to welcome the business operation of Microsoft because the company has its name and brand known to a large population in the market. The government will also appreciate the existence of the big company because it will boost the economy of the country by providing job opportunities to the jobless and also increase government income by paying revenue (Wheelen & Hunger, 2008).
References:
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
Longenecker, J. G. (2008). Small business management: Launching and growing entrepreneurial ventures. Mason, OH: Thomson/South-Western.
Owens, R. N. (1954). Introduction to business policy. Homewood, Ill: R.D. Irwin.
Wasserman, P., & Gale Research Company. (1970). Encyclopedia of business information sources. Detroit, Mich: Gale Research Co.
Wheelen, T. L., & Hunger, J. D. (2008). Strategic management and business policy: Concepts and cases. Upper Saddle River, NJ: Pearson/Prentice Hall.