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Think global, act local 

A strategy that every entrepreneur should keep in mind

Published : Friday, 27 September, 2024 at 12:00 AM  Count : 218
Safiqul Islam Milton
Thinking globally refers to expanding your business beyond your home market and exploring new opportunities in different regions and countries. While acting locally means understanding the unique needs and preferences of customers in different regions and tailoring products, services, and marketing strategies accordingly. So, 'Think globally, act locally' is a phrase that emphasizes the importance of understanding both the local and broader market simultaneously. Before launching a product in today's highly competitive market, an entrepreneur should identify the needs of local consumers and the global trends that shape the business of a specific product all over the world. As per today's globalized economy, all the businesses are facing challenges of balancing global ambition with local realities. Finding the right balance between thinking globally and acting locally is the hidden key behind the successful ventures of today. In order to take advantage of new markets and opportunities, this marketing strategy can be a crucial maneuver to achieving bigger goals.

If we closely look at every successful international brand, the 'Think Globally, Act Locally' strategy will be seen as a basic approach regarding their product promotion and marketing. Let's think about McDonald's, which is often considered the most successful brand of the postmodern era. They are very cautious about their rules of franchising in new locations, even while prioritizing localization on top of everything. The reflection of local needs is visible in their every step, from flavoring to packaging. Be it Red Bull, Starbucks, KFC, Coca-Cola, Nike, Netflix, or any other big venture, all of them have been implementing this strategy very efficiently and timely.

Think about Unilever, a hundred-year-old consumer goods producing and distributing company whose business model is usually known as a 'functional' or 'divisional' structure whereby an organization is divided up according to focus areas. That means each Unilever business group is fully responsible and accountable for its own strategy, growth, and profit delivery globally. Whenever they enter a new market, they enter as a pioneer rather than a follower. Lux Soap, a very popular Unilever product witnessed enormous popularity in the late 80's and 90's in the Indian subcontinent. 
Whenever a brand wants to take control over the market, they have to think beyond time, capacity, and competitors's mindset. A visionary brand tends to leave a message and a clear mark in everything, every step. 

Now, the concern is: what is the current situation in Bangladesh regarding business expansion and market dynamics? We became a free economy in 1991, when the country witnessed a dramatic change in its market subtleties. Most of the production sector became decentralized thanks to the revolutionary shift in the business paradigm. However, in the new reality, the local brands couldn't keep up with the foreign brands. Gradually, global brands took control over most of the market. Now, the question is, why local brands couldn't flourish as much as the foreign ones? Here comes the 'Think Globally, Act Locally' strategy. To implement the strategy in an innovative way, a brand has to spend more and more in R&D (research and development). Our local brands do not spend the required amount in R&D, and the amount they spend isn't spent efficiently. They also tend to ignore the powerful impact of strategic branding and communication using various media and channels, which is seriously considered by a visionary brand. Let's see how much of the revenue global business giants spend on R&D and how much our local ones do.
Source: www.visualcapitalist.com
It doesn't matter how large your revenue scale is; in order to achieve the ultimate success, you have to spend a sufficient portion of it in R&D. Bangladesh ranked 102nd in the Global Innovation Index 2022 considering the R&D expenditure. In comparison, India ranked 40th, Indonesia 75th, Sri Lanka 85th, Pakistan 87th, and Cambodia 97th. According to the Centre for Policy Dialogue (CPD), most industries in Bangladesh spend less than Tk 500 per year on R&D per worker. This is why our local brands find it very difficult to survive in the domestic market, let alone flourish as a global brand.


For a brand, expanding to a completely new market or even just to another city can be very challenging, as it is often painstaking to position the product properly and control all the outlets effectively. To make the journey less painful, an entrepreneur should be in the customer's shoes and look at everything from the customer's perspective. Most of our local entrepreneurs do not wish to believe in such a strategy, as sadly, they aren't visionary enough to take their products to every corner of the world. However, even if the venture is just to serve the local consumers, we have to think cautiously. Regardless of having a small amount of land, Bangladesh has an enormous population who possess diverse cultures and lifestyles. 

Let's think how we can actually implement such a strategy for our own brands. The first rule is not to sell or even attempt to sell into a market that you have not visited lately. Experience the culture firsthand is very crucial rather than assumptions from local markets, and so market research is important. The second most important rule is to research what customers need. Regardless of the product standard and where it is sold, success is often based on many other factors. That's why you have to focus on the target customer's behavior, how they buy similar products, what are the distribution channels they use, and what is the best pricing strategy for them. Thirdly, you have to develop promotional strategy cautiously and creatively and always keep the competitor's steps in mind. Finally, you have to have a strong and persuasive branding policy and proper guidelines to implement it.

It's very crucial to make the logos, straplines, and packaging aligned with the core message. To reach a wider consumer and understand the nuances of the local market, a brand has to be partnered with local distributors and retailers. Collaboration with local businesses and other organizations is very crucial to gaining the trust of local consumers. The marketing approach also should be targeted, utilizing local media and influencers. To build a positive image and foster relationships with local stakeholders, a brand must engage in public relations operations and spend some in CSR (corporate social responsibility) activities. 

Another tool to explore new market iscalled 'Hyper-Localization'. In this era of digital connectivity, hyper localization has become a game changer. Through technology, businesses can personalize experiences for customers at a hyperlocal level. Think about a targeted social media campaign where technology empowers businesses by seamlessly encompassing global strategies with a beautiful mix of hyperlocal execution that maximizes the impact. To get along with the ever-changing behaviors of modern customers, you can't just travel everywhere every time; rather, you can track their interest by using tech tools that are rapidly changing the landscape of today's business atmosphere. With this approach, businesses can respond quickly to changing customer preferences, technological breakthroughs, and changing market dynamics.

It's needless to say that the philosophy of 'Think Global, Act Local' has become a primary key to success in today's businesses, as it can help us find the right balance between global expansion and local connections. 

The writer is a senior banker of Global Islami Bank PLC



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