Censorship, enforced written and unwritten laws, red tape and language hurdles not to mention having and keeping the rights to your own patents and products.
Give examples of 2 U.S companies who may have faced some or all of these issues.
Give examples of 2 U.S companies whose global ventures have gone smoothly.
To what do you attribute these negative and positive results? Country? Multi-national company (MNC) preparedness? Luck of the draw? Support your answers with appropriate theory.
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Deliverable Length: 250 words (minimum) per reply
Groupon had operated in almost 50 countries but is now down to 15 and the company has taken steps to attempt to boost profits, but they barley report a profit over the last few years. Groupon’s operations in Africa, Asia-Pacific, Latin American and sections of Europe has not performed as well. As a result, Groupon management has taken strategic decisions to shut down operations in many countries. (www.forbes.com).
Groupon leads the group buying market in the US and offered the first deals on its Chinese site GaoPeng. The site expanded from Beijing and Shanghai and other Chinese cities, GaoPeng is up against intense competition from more than 4000 local group buying sites. Lack of understanding was Groupon’s China head international market problem, they though that what work in Germany would work in China. (www.techinasia.com).
Amazon faces censorship on China in the fact that there are books that one cannot purchase if in China. Facebook is blocked entirely from China. China has such a tight control over the internet that complete sites are blocked or certain content is blocked from its internet users.
Coca Cola has a smooth transition in to China and even made an agreement to lead to a stronger bottling system. They were a perfect model for first-in-market advantage. Red Bull has followed Coca Cola and was very successful in launching in China.
I believe that since Google said it will no longer adhere to China’s censorship demands and that it may just pull out of the country all together has hurt other US companies. It has lead to new scrutiny from human rights groups.
Walmart is a U.S. company that attempted to expand in Germany. This proved difficult for them because of the intricate labor laws, the business hours which are restrictive and regulatory red tape. The locals also did not like the idea of Walmart because they were not use to someone bagging their groceries and the greeters creeped the German consumers out.
Another company that did not fair well was Mattel in China. When Mattel brought the Barbie to China it was not well received because it did not help with skill building nor was it educational which is what the market was at the time.
Coca cola and McDonalds are two companies that have successfully expanded into the global market. Coke and McDonalds were able to adapt to the local market and adjust the product to attract consumers in the local market. Brand recognition was also key to the success of these two companies expanding globally. Another thing that was positive about both of these brands was standardization and consistency. These companies could be counted on for the same product no matter what location you would visit or where you would purchase the Coke product from.
Levins, C. (2018). 7 Companies that Paved the Way for Global Marketing. https://www.airseacontainers.com/blog/seven-companies-paved-way-global-marketing/