Everyone needs ammunition to convince the budgetary powers-that-be that globalization will enhance shareholder value. Some of that ammo will come from the tales of successful companies that have proactively sought to extend their reach to consumers and business partners around the world. So since last month’s column (“Global Marketing: Where Does Your Company Fit In?”) outlined the globalization aspirations of companies just starting out on their trek, this month we’ll look at three types of firms that have already undertaken international expansion.
1) Toe dippers. These firms generally find themselves entering a national market accidentally (because of new demand for a product that appeals to foreign visitors, perhaps) or more deliberately, typically in reaction to some event (for example, a demanding national distributor or an aggressive competitor). Regardless of why they venture overseas, it’s usually without conviction or adequate budget. They adapt some element of their Website to local market needs, but such localization tends to be incomplete, involving either limited translation of some content or an ability to deliver via local shippers.
If your firm falls into this category, undertake some structured research such as focus groups and interviews with customers and prospects. These will probably show you that you are leaving money on the table and spending a lot more money than you have to because of inefficient translation and localization processes. If you have resources such as local staff in a market, work with them to find some assistance with conducting such research. If you do not have staff in-country, look to marketing and public relations agencies for help in setting up such focus groups.
One thing to watch out for: In hard economic times, when companies face proof that they are wasting money through inefficiency or fear that their investment could be better spent in other areas, they sometimes propose the knee-jerk reaction to eliminate international efforts altogether.
2) Stubbed toes. Many well-known brands have entered international markets by allowing local business units to set their own agendas, usually divorced from the corporate brand, message, and look and feel. The net result is a fragmented international presence with very little leverage of the assets that make these companies such a powerful force in their domestic market. Nonetheless, they continue investing internationally but without a consistent use of the Internet to bolster their physical channels.
Executives at many such companies wrap themselves around the axle of indecision and regret. Convinced that they are spending far too much to get much too little, they do nothing.
If this describes your company, it is time to grab the tiller and let everyone know where you want to be globally, even if you decide to hold the course for now. For example, you may decide that your current product line would be useful anywhere on the planet without any modification. On the other hand, you may find that your as-is offering happens to be tied to a single language, culture, country, and ethnic group. Any decision to enter a market requires a systematic analysis of what exactly your products are and how universal they are.
3) Second bouncers. Some companies created international Websites in response to real or perceived market needs, often spending enormous amounts of money and manpower creating manual and jury-rigged processes to make their corporate message, brand, and product offerings consistent worldwide. though they failed the first time around to meet customer or market needs, they succeeded on the second try.
Failure the first time around is par for the globalization course. If your first international forays do not work out, analyze the misstep and figure out how to do it right.
Don DePalma is the founder/chief research officer of the research and consulting firm (Common Sense Advisoryand author of (“Business Without Borders: A Strategic Guide to Global Marketing.”
Network
