Global Account Management Case Study

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Introduction

Can selling be globalized?, if we ask manager of any organization , he would probably reply in a highly convinced manner saying that the global account management is both inevitable and desirable for any company. However, companies should have a clear understanding of the term, and should think intensely before jumping on the global customer bandwagon as building such relationship can bring hassles and troubles for the company. In many cases, it has been found that companies opting for globalized sales found them trapped as unanticipated costs outweigh the benefits, with major threat coming from downward pressure on price level as consolidated sales triggered request for greater volume discounts, and also increased sales commissions, …show more content…

The authors postulates that framing key strategies and their further implementation are they key areas where any international organization need to take some pre-decided decisions before entering into global account relationships. Thus, the companies and the managers need to be aware of the pitfalls and set themselves clear criteria for their relationships before commitments are made. Hence, only if these steps are followed by the entity, the outcome of global account management will be rewarding else it will turn undesirable.
Strategy for Global Account Management

Once the company decides to introduce itself to global account management, they key strategic question is to select an appropriate customer for global account management. Although these decisions are somehow dictated by the preference of the customers, but companies should take a highly selective approach to the introduction of global account structures, since such relationships are inherently dangerous. Thus, in order to designate a customer account as a global account, the two criteria which the companies should heed on are the balance of power in the relationship and the potential for strategic synergies:

-Assessing Balance of …show more content…

As we had already discussed in the previous sections, sales functions has always been considered as a local responsibility. Thus, implementation of the changed plans relating to customer account management at the global level will bring some problems in the form of possible conflict between global account management team and national subsidiary. For instance, even if the company starts managing customer’s account globally, functions such as after-sales service, deliveries, are to be managed locally. Similarly, managers assigned to the global account team are often located in the field, not in corporate units, because their location is determined by the customer organization rather than by their own. Therefore, it becomes important for the company to solve the issues relating to the implementation in the following

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