Ethnocentrism Concept

Ethnocentrism Concept

Ethnocentrism is an approach for managing the international business. Under this approach local market is primary market and consider for policies making and strategies formulation. Culture differences are not considered for policy making and whole world is considered as one market. Characteristics of ethnocentrism approach has been explained below

1.    Local Market is Focused

In ethnocentrism the local market is focused, and local market is given primary consideration for policy making and local market strategies are applied all over the world.

2.    No Culture Difference

Ethnocentrism gives little value to culture differences, and there is no change in the rules of games for international market.  Ethnocentrism sees world with one eye and standard policies are implemented all over the world.

3.    Centralization Concept

Ethnocentrism approach is basically a centralized approach of doing the business. It means that business is controlled from one point i.e. Head Quarter and policies of Head Quarter are implemented all over the world,

4.    Local Market Research

Ethnocentrism does not offer space for local market research, rather head quarter market strategies are followed in local market. It means marketing department work cannot device the market strategies.

5.    Effective Controls

Ethnocentrism approach or strategy helps in managing the organization more effectively. Due to standard policies and procedures, there is no confusion, and controls are well defined and more effectively implemented.

6.    Standardization

In Ethnocentrism approach, there is   standardization of product and polices. There are number of associated advantage with standardization are achieved by organization. These advantages include clarity, integration of organization etc.