See the real-world applicability of the content of the international
marketing class. We have learned about the important factors when conducting international marketing. We have considered various cultural, social, legal, political, and economic environments a company has to adjust
to when going abroad. Yet, even successful companies sometimes fail when going abroad. In this exercise, Identify one of those companies and understand the reasons why they failed. To start, search
for information online. You may use a company you enjoy doing business with, such as a food chain, hotels, grocery or consumer goods stores. See which countries they internationalized to and if there is one market,
they failed in. Companies may be named more than once if they failed in various countries, but no company country combination can be repeated (thus, do not use my exact example below). Once you have found a good
example and sufficient information, please write a discussion about your findings. Please consider political,
economic, cultural &social, legal issues which led to the market entry failure. There are some obvious
examples, but maybe you want to dig a bit deeper and find a new interesting one. Learning Goals: Understand
and Apply knowledge about international environments, conduct market research, write a short discussion.
Write in a concise manner.
in.com to check for plagiarism.Content: 1) very brief overview of the company and the market entry, 2)
discussion of issues leading to market failure (main focus of the assignment), 3) suggestions on what company
should have done better and what they can learn from the failure. In short, here is a brief example of a market
entry failure (please note that not all components required for the assignment are discussed here as it is only a
brief example of issues; you cannot use the exact same example): Walmart entered Germany in 1997Walmart
exited Germany and its attractive grocery/retail market after only 9 years in business.
Issues: Ethnocentric
View (lack of adjustment to local culture)Labor relations (pro-labor union culture in Germany): Legal/Political
Environment Shopping culture (Germans prefer to shop in smaller stores, no bulk purchases Environmental
Issues (Germans are too “green” and oppose the plastic culture)Ethics (different perceptions of what is
considered ethical; such as spying on employees)Differences in corporate culture (German employees and
customers did not buy into the US corporate culture – smiling )Lack of economies of scale/ High competitive
environment in Germany grocery market Strategy was not transferrable: Low-cost leader with huge supplier
network (shop local is more important in Germany than the US)Price sensitivity (consumers are already used
to local chains with cheap prices but higher quality)