What is Regiocentric Orientation?
Regiocentric orientation is a type of international management strategy. This approach focuses on the development of a company’s operations within a particular region or geographic area. It is in contrast to a polycentric orientation, which focuses on the growth of a company’s operations on a global scale.
Benefits of Regiocentric Orientation
Regiocentric orientation offers several benefits for companies entering the international market. These include:
- The ability to better understand the unique culture, customs, and regulations of a specific region.
- The potential for increased customer satisfaction due to an understanding of the customer’s unique needs.
- The potential for increased efficiency due to localized production and distribution.
- The ability to better respond to changes in the market due to the company’s proximity to its customers.
Examples of Regiocentric Orientation
Regiocentric orientation is commonly used by multinational corporations as a way to expand their operations into new markets. For example, Honda Motor Company is a Japanese car manufacturer that has adopted a regiocentric orientation in its operations. Honda has established a strong presence in the North American market, with manufacturing plants in the United States and Mexico, as well as sales and service centers in the United States, Canada, and Mexico. Another example of regiocentric orientation is the German automobile manufacturer BMW. BMW has adopted a regiocentric approach to its operations in the North American market. In addition to having production facilities in the United States and Mexico, BMW also has a number of sales and service centers throughout the United States and Canada.
Conclusion
Regiocentric orientation is a valuable tool for companies looking to expand their operations into new markets. This approach allows companies to better understand the unique culture, customs, and regulations of a specific region, as well as the potential for increased customer satisfaction due to an understanding of the customer’s unique needs. Additionally, companies can benefit from increased efficiency due to localized production and distribution. Examples of companies that have adopted a regiocentric approach include Honda Motor Company and BMW. These companies have established a strong presence in the North American market, with manufacturing plants in the United States and Mexico, as well as sales and service centers in the United States, Canada, and Mexico.
References
Bartlett, C. A. & Ghoshal, S. (1989). Managing Across Borders: The Transnational Solution. Boston, MA: Harvard Business School Press. Geringer, J. M. (1989). International Management: A Strategic Focus. Englewood Cliffs, NJ: Prentice-Hall. Honda: https://www.honda.com/ BMW: https://www.bmw.com/en/index.html