How International Companies use Different Business Strategies: Examples
As businesses continue to expand globally, they face the challenge of adapting to different markets and cultures. International companies need to develop localized business strategies to remain competitive and relevant in these markets.
Introduction
In this blog post, we delve into how international companies use different business strategies with examples. We aim to provide a comprehensive understanding of why companies need to customize their strategies for different markets and how this can lead to success.
Customizing Business Strategies for Different Markets
Business strategies that work in one market may not work in another due to differences in cultural and social norms, economic conditions, political stability, and legal systems. Therefore, international companies need to customize their strategies according to the specific requirements of each market.
One example of this is Starbucks, which has successfully expanded from the United States to several countries worldwide. In Japan, Starbucks has changed its business strategy to cater to local preferences by introducing more traditional Japanese drinks and pastries. They also use smaller store formats to fit within the limited space available in Japan’s urban areas. This strategy has proved successful, with Starbucks becoming the leading coffee chain in Japan.
Another example is McDonald’s, which has customized its menus to suit different countries’ tastes and preferences. In India, McDonald’s offers a non-beef menu due to the cultural and religious dietary restrictions of many Indians. In China, McDonald’s has added rice dishes to its menu, catering to the Chinese population’s preference for rice-based meals.
The Importance of Local Partnerships
International companies also need to build relationships with local partners to gain insights into local market conditions, navigate regulatory hurdles, and adapt their strategies to local conditions. Partnering with local companies can also help international companies build brand awareness and goodwill.
One example of this is IKEA, who partnered with local manufacturers in India to comply with the country’s laws requiring 30% local sourcing. This strategy helped IKEA build strong relationships with local manufacturers and suppliers and better understand local market conditions.
The Role of Innovation in International Business Strategies
Innovation is key to adapting international business strategies to local markets. Companies need to stay ahead of the curve by innovating and creating new products and services that resonate with local customers.
An example of this is Apple, which has been successful in China by introducing innovative features like dual sim support to cater to Chinese customers’ needs. They have also catered to the Chinese market by offering more affordable iPhone models and making use of local mobile payment systems like Alipay and WeChat Pay.
Conclusion
In conclusion, international companies need to understand the importance of customizing their business strategies to meet the specific requirements of different markets. This requires building local partnerships, staying ahead of the curve through innovation, and adapting to local regulations, tastes, and preferences. Success in international markets is achievable by being flexible and adapting to the ever-changing business landscape.
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