Pressures for Local Responsiveness

• What is the pressure for local responsiveness?

  The need to adapt products or operations to meet cultural, legal or customer demands in different countries
• What drives a business to be more locally responsive?

  • Cultural differences
  • Legal requirements - (e.g. product standards, packaging rules)
  • Local competitors - (e.g. competitors may already cater well to local tastes)
  • Consumer preferences
• What are the advantages of being locally responsive?

  • Builds brand loyalty in local markets
  • Increases customer satisfaction and relevance
  • Can give a competitive edge over generic global rivals
• What are the disadvantages of being locally responsive?

  • Higher costs due to more variation in products and operations
  • Can reduce economies of scale
  • More complex supply chains and marketing