in positioning a business in Asia Pacific, a company must decide whether to adopt a regional or country-by-country strategy. Asia Pacific is so diverse that there are as many differences between Japan and Indonesia as between Germany and Tunisia. The only regional economic group, ASEAN, is a long way from becoming a common market. Differences in habits, religion, government policies and regulations erect solid barriers between countries.
There are, however, several arguments in favour of a regional approach:
Business functions such as strategic intelligence, financial engineering, R&D, training, and specialized services, only achieve economies of scale if they are in a central location from which it is possible to service the whole region.
It is still possible for Western firms to achieve a regional or a subregional coordination of activities, particularly for components, spare parts and semi-finished products.
Certain industries must serve regional customers and compete with regional competitors in order to make a regional strategy worthwhile.
Because the directors of Western multinationals are used to thinking in terms of large regions such as North America or Europe instead of individual countries, managers in Asia Pacific often find it easier to obtain adequate investment resources if they present a regional perspective rather than a collection of country strategies.
Therefore 'strategies for Asia Pacific must combine a regional approach at country-by-country approach.
Orientation: regional strategy versus country-by-country strategy : Resource based and Market based article from Resource Management Catagory Orientation: regional strategy versus country-by-country strategy
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