I don’t think that Globalcast is adopting a reactive strategy. I guess they have it already and they have always had it that way. There are some case studies, proving that fact. It has been that way, for in the late 1990’s the major clients have changed the rules of the game and there were three key market changes to which Globalcast had to adjust. And from all the actions the company did, we nowadays see, that Globalcast has never been a trend-maker, but a trend-follower. These business activities were what defined their strategy as reactive.
I cannot state that this was a wrong decision. It might be true, that a company at that time had no other choice, than only follow what customer demands. In today’s global market place it is quite a popular decision between many third-party logistics providers, who have lagged behind in technology and trends. That is why they have to result in the reactive approach to transactional logistics, rather than choose a proactive supply chain approach to strategic logistics.
There are actually a lot of disadvantages of the reactive approach itself, so I don’t believe a company should go on and make it more agile. It might have sad consequences. The reactive approach represents a serious competitive disadvantage with a vast amount of data processing and transmitting instantaneously. As a method, it also can produce higher risks and threats. Also, this process often means that a service provider responds to client requests for piecemeal services. Even though a transaction-based 3PL is able to provide effective responses, the identification of disruptions and the development of solutions stays with the client.
Globalcast have build a good and trustworthy relationship with the customers, but the changes in the market place were rapid and Globalcast was not able to interpret and react to the market changes accordingly. Globalcast should have used the owned factories throughout Europe to respond to and adapt changes but its customers chose the rapidly developing economies, which are outside Europe. This did not help Globalcast's business.