The term “geocentric” refers to the belief that the earth is at the center of our solar system and universe. It’s an ancient Greek idea that is often used in astronomy and astrology.
In international business, geocentric means that companies should take into account all potential markets when making decisions about where to sell their products and services. This is different from using a PESTLE analysis or SWOT analysis because both of those methods look only at specific regions within a country or continent (e.g., Asia).
According to this theory, firms should pursue opportunities anywhere in the world, regardless of whether they are headquartered in one country or another.
The geocentric approach suggests that firms consider all markets around the globe when making decisions, instead of just focusing on their home market or regional markets. This means that firms will have to adapt their products and services for each market, which can be costly and time consuming. However, it can also be beneficial if a company wants to expand its reach globally without building infrastructure in each location where it operates.
The geocentric approach can be beneficial because it allows companies to sell their products and services worldwide without having to build up infrastructure in all locations at once.
The geocentric approach has been criticized for being too simplistic. Some critics argue that it does not take into account cultural differences between countries or regions, which can affect how consumers behave in these areas (e.g., their buying patterns).
