1. Managers can completely control the daily business activities of subsidiaries in the target market and ensure that valuable technologies, processes and other intangible assets remain in the subsidiaries. This way of complete control can also reduce the opportunities for other competitors to gain the competitive advantage of the company, especially when the company takes technology as its competitive advantage, which is particularly important. In addition, the manager can maintain complete control over the output and price of the subsidiary. Different from authorization and franchising, all profits created by subsidiaries must also be handed over to the parent company.
2. If the company wants to coordinate the activities of all its subsidiaries, wholly-owned subsidiaries will be a very good entry mode. From the perspective of global strategy, companies can regard each country's market as a part of the interconnected global market. Therefore, having complete control over wholly-owned subsidiaries is more attractive to company managers who pursue global strategy.