Local company vs global company: which is better? The question is ever-present in today’s business community considering how easy it is to expand globally. Technology makes access to a global market possible.
Therefore, startups are faced with the decision every year. Should we build a local or global business? And the truth is, the answer is different for every business. Some companies are more fit for local business, while others necessitate expansion.
Local Company: The In’s and Out’s
A local business doesn’t necessarily entail a single-location brick and mortar. Rather, a local company could be an online business whose target market resides only in a certain region or city.
The central benefits of a local company is a clear focus, defined market, and more personal branding. Consumers love businesses they can trust, and it is much easier to grow a relationship with a local, face-to-face business than an international, online brand based in a different company.
In fact, this is why many large companies create corporate spin-off’s to try to compensate for the lack of personal interaction that comes with being a global brand. However, a local company vs international company may never be equal in the personal impact each makes.
Local companies have tools like Yelp to contribute to their local success. On the other hand, global companies typically have to rely on promoting their own client reviews. This is not always the case, though, especially if a global company has several local bases that customers can visit and review on Yelp.
Overall, when it comes to a local company vs global company, local has the advantage of more personal and direct marketing. In most cases, this can lead to greater conversions and better sales. Now let’s take a look at a global company’s perspective.
Global Company: The In’s and Out’s
Valoso knew it would grow to become a global company. This has always been our ambition. Our services are tailored for a global market. We offer video production and event marketing. The event industry is the definition of global business.
The central benefits of a global company is a greater impact, wider market, and cultural receptiveness. Therefore, this is what drew Valoso to become a global company.
CEO of Valoso, Bobby Lin, expresses, “Global expansion is at the core of our mission. The more clients we can reach, the more videos we can produce and the more successful events we can empower.”
Lin obviously sees event marketing and video production as a global effort, and he’s right. According to Eventbrite’s Industry Report, 68% of event organizers say location is the top factor when choosing a venue.
This means that choosing the right city is at the core of a global company’s marketing strategy. Because its audience is global, an international business still has to choose where its greatest audiences are and establish headquarters in these locations.
For example, Valoso has bases in the U.S., U.K., Australia, New Zealand, and Germany. Valoso chose these locations because our target market is greatest here. We are striving to find businesses and event organizers in need of quality video production and marketing strategies, and these locations are flourishing with such.
The Deciding Factor
According to our insights from Valoso, the deciding factor for any business to choose to become local or global is its target audience. Is there a market for expansion in your industry? Or will you find better success focusing on a local region?
If you do not know whether your target market is open for expansion or not, you have not done enough research to define your target audience. Every business must know its target audience inside and out.
Social media is one of the best tools to find your target audience, whether you are a local company vs global company. Analytics are also essential to narrow in on your market. You can track your own stats with analytic tools, or you can research local and global analytics through websites like Google.
For example, you can use demographics from a promotional video you created to see where the greatest interest was. Or, you can research the most popular regions for companies in your industry.
Both local and global brands have their pros and cons. The above examples and insights illustrate this fact. So, it is only a matter of which you will choose to expand your startup: local company vs global company.
Fill out the contact form below to learn more about Valoso.