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troubles going global (business)

Page history last edited by Brian D Butler 8 years, 4 months ago

 

 

 

Table of Contents:


 

 

When you shouldn't go Global:

  • see our discussion on international expansion ...specifically the section on OLI theory....and make sure you have ALL 3 ....not just one or two of the advantages needed to go global.
  • See also:  article from Harvard HBR
  • Three questions to ask:
    1. Are there potential benefits for our company? (dont just follow competitors.  Dont overestimate the benefits)
    2. Do we have the necessary management skills? (do you REALLY have the skills?)
    3. Will the costs outweigh the benefits? (extra coordination costs, setup costs, etc)
  • Examples of failed globalization strategies:
    • ABN AMRO
    • AES - (US power company)
    • Daimler- Chrysler merger
    • BTR - industrial conglomerate
    • TCL - chinese maker of electronics
    • Kelda - a UK water utility
    • Deutsche Telekom (Tmobile)
    • Deutsche Post - overpaid for DHL and Airborne
    • AXA - French insurance group
    • BenQ- acquisition of Siemens mobie device business
  •  
  • Good examples of well executed globalization strategies:
    • Telefonica
    • GE commercial finance devision
    • Renault + Nissan

 

 

 

Globalization of technology

Yes, you come up with a great idea in the USA, and it works well...and then...someone in Germany copies it, but offers it in multiple languages (which Europeans are good at doing), and next thing you know, they are selling well all across Europe, Latin America, Asia...and are doing better than the original.  This is an accelerated product life cycle.  Recommendation...launch world wide right from the start.  Go with multiple languages.  Dont give the clones a chance to beat you at your own game.

 

 

Five hundred ways to customize stuff — Startups or VCs toying with the idea of mass customization in a business may want to take a look at the cyLEDGE International Configurator Database. The people behind it have managed to collect what looks like every product customization tool on the internet, providing a handy reference to those building their own. 

 

 

The iPhone dominates, here and abroad — This year’s-end Zeitgeist reflects both the most popular and the fastest-rising global search terms that people have typed into Google.com over the past year. To see the results, visit http://www.google.com/zeitgeist.

 

 

 

Examples:

 

 

 

MySpace vs. Facebook

 

Facebook is now the largest social network in the world. But they continue to trail MySpace by a massive 36 million users in the U.S., and at current growth rates it will take them 18 years to overtake them.  Most of Facebook’s growth is international, where they’ve executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace, by contrast, expands via a command-and-control infrastructure that puts people on the ground in each new international market). But the commercial value of some of those international users is far less than the U.S., the UK, Japan and a handful of other countries with robust online advertising markets.

 

 

 

Success Stories:

 

please visit our discussion on international expansion

 

 

 

 

 

Suggested Academy

 

Internationalization Process of the Firm
The Internationalization Process of the Firm informs on the following issues: the internationalization process of companies that want to conduct international business; the different frameworks and theories regarding how companies handle the internationalization process; the role of company size on a company’s ability to efficiently achieve its internationalization goals; the factors that dictate the choice of a particular foreign market entry mode; and why gradual entry used to be the method of choice, but is becoming obsolete.
CategoryMarket Research and Entry

 

 

The World is Open for Business
This module was created in cooperation with the U.S. Commercial Service and is the first chapter of the bookA Basic Guide to Exporting. In this module, we will cover: Why you should sell globally; agencies that specialize in helping small to medium-sized businesses export successfully; old assumptions about exporting that may not be accurate; and how to transform yourself and your business through exporting. A case study on the company Domes International is also included.
CategoryExporting

 

 

 

 

 

 

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