Pressures for local responsiveness and global standardization: a case study of Nestle & Komatsu Multinational enterprises

 

Nestle is a Switzerland based multinational enterprise. Komatsu on the other hand is construction multinational enterprise based in Japan. Medical food, bottled water, baby food, breakfast cereals, coffee, tea, snacks, daily products, ice cream, frozen food and pet foods are the products that Nestle produces.

Nestle is highly responsive to local pressure. The strategy in marketing used by Nestle is “to act and react locally to specific customer groups based in areas of acquired water springs.” It has succeeded by basing its success on the consumer locality on its brands. It gets specific bottles designed for specific areas. However, this strategy does not help reach all customers they serve in an automated manner thus they have to pay an up-charge to cater for this gap. It falls short of globalization due to its idea on being submissive to localization pressure. (Ludger’s blog, 2009).

According to Slide share, Komatsu has been subjected to globalization where it upgraded its products to obtain international standards with 15 of its businesses capitalizing on globalization. Achieving low costs and increasing the purchasing power in an attempt to exploit its market based competency in addition to gaining access to resources and capabilities in international markets hence spreading business in a wider market push Komatsu to globalization. It strains to be geographically globalized although it does not feature well. It also responsive to local pressure by discounting end prices, managing high sales-pressure and increasing its regional capacity by having regional autonomous bases. (Slide share, 2014).

The Nestle Company needs to globalize because of its sidelined behavior to localness. It’s  much suited to localization due to its market strategy. Komatsu on the other side is in a position getting to local pressure.

Free trade deal has been seen as a challenge to the United States economy thus the call to disregard the Trans-Pacific Partnership (TPP) trade agreement. If the recommendation is approved, then globalization of companies will be affected. Victims of globalization have made their voices heard through politics. (Tijerina, 2016).

 

References

Tijerina, S. (2016). The Impact on U.S. Politics due to the Globalization process | The Glocal. (n.d.). Retrieved from http://glocal.bangordailynews.com/2016/03/19/home/globalization-and-the-impact-on-u-s-politics/

Ludger’s blog, (2009). Global integration versus local responsiveness Retrieved from http://ludgerroedder.blogspot.co.ke/2009/10/global-integration-versus-local_21.html

Slide share, (2014). Globalization of Komatsu- strategic Management cases Retrieved from http://www.slideshare.net/BambangWijanarko1/globalization-of-komatsu-strategic-management-cases