Research one organization that has expanded into a global market and outline some of the problems that the organization had to mitigate when entering the new market-space. Specifically, identify three of the seven characteristics listed below. Was there another global market barrier the company had to deal with that is not addressed in the seven aforementioned characteristics?
Culture: No two cultures are the same, and understanding the business culture in another country is one of the first keys to success in international business. Culture defines everything a society does, including business practices, responses to advertising and marketing, and overall sales. It is important to conduct research on the culture of the country that an organization intends to enter. Understanding these areas allows an organization to be better prepared to enter the global market.
Data Accessibility and Reliability: The degree of technology can vary substantially in global markets. If an organization’s product or service requires a high degree of technology to use or implement, then markets with low levels of technology will not be suitable or sustainable for operations.
Competition: In today’s global markets, every organization is pitted against worldwide competitors with consistently improving productivity, better performance, and shrinking prices. Typically, the lowest cost producer usually wins. Many global producers accept lower profit margins, which increases competitive pressures.
Consumer Preferences: The success of your marketing strategy involves gaining a comprehensive understanding of the particular markets that an organization serves. A large portion of these markets may be based on consumer preferences. A simple method of identifying consumer preferences is to answer the questions, who is buying the goods and why are these consumers purchasing these items.
Product Mix: When gathering market information on the product the organization intends to introduce, it is important to understand the overall product market, the competition and the product market entry strategy. It can be difficult to find information for some markets; however, it is important for organizations to gather as much information as possible in order to enter the market successfully.
Business Operations (Logistics): Worldwide shipping (transportation and logistics) must take into consideration costs, time delays, and country restrictions. Each country has its own laws governing what goods may be imported. Companies must comply with all importation laws, and must be willing to invest time to learn the various rules and regulations concerning exports and imports.
Currency: Pricing products for a global marketplace can be challenging. In addition to online sellers needing currency converters, or payment processing systems that accept multiple currencies, organizations must also be aware of pricing sensitivities by country, by product and by market.