Context: Companies that perform well in their country of origin usually consider expanding operations in new international markets. Deciding where, how, and when to expand is not an easy task, though.
Many issues need to be considered before crafting an expansion strategy and investing significant resources to this end, including:
the level of demand to be expected for the company’s products/services
presence of local competitors
the regulatory, economic, demographic, and political environments
Carefully researching and analyzing these and other factors can help mitigate the inherent risk associated with an overseas expansion strategy, thus increasing the likelihood of success.
As a data analyst in your company’s business development department, you’ve been tasked with the responsibility of recommending countries for international expansion. You’ll write a report to the company’s executive team with your research, analysis, and recommendations.
Instructions:
Write a 525-word summary covering the following items:
According to the article listed above, what were the most important strategic moves that propelled Netflix’s successful international expansion?
The article mentions investments in big data and analytics as one of the elements accompanying the second phase of overseas expansion. Why was this investment important? What type of information did Netflix derive from the data collected?
According to the article, what is exponential globalization?
Not all international expansion strategies are a resounding success, however. Research an article or video that discusses an instance in which an American company’s expansion efforts in another country failed. According to the article/video you selected, what were the main reasons for this failure? Do you agree with this assessment?
Explain some of the reasons why certain companies’ expansion plans have failed in the past.