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Definitions
Globalization
Strategies Adapting Business
Functions Language and Technology Localizing Exports
Case Studies of Globalization/Localization MBA Student Consulting Projects Gateway Business & Community Coalition
Gateway Business & Community Coalition “The mission of the Gateway Business and Community Coalition (GBCC) and its programs is to increase the level of literacy, improve technological skills and open up educational and job opportunities by making computer skills and technology more readily available to the underserved members in the community both at home and at their local organizations.” (2) In an effort to expand the operations of GBCC, the Business Plan team examined the Latin American and Caribbean regions for potential target markets. The recommendation was that the non-profit consider entering the Mexican market The team identified several characteristics of technology-driven non-profits, including the localization of non-profits. “Most domestic nonprofits serving the technological needs of communities are geographically localized and serve only the market in which they are located, as opposed to a nationwide or international coverage.”(17) Due to the localization characteristic of non-profits, there are a few direct competitors which will affect GBCC's expansion into the Mexican market. The Sun Microsystems International Business Plan, developed for the Globalization division, examined the international marketing and localization strategy for Project Orion, a consolidated software offering. Project Orion was the codename of a consolidation of existing middleware offerings previously available under the SunONE brand. The team's research focused on the identification of the most relevant international (non-English speaking) markets for the launch of localized versions of Project Orion. Through the team's research it became clear that the quality of the individual products, the support services and the localization efforts is of the utmost importance for the credibility and reputation of Project Orion and Sun. “Our research has shown that a targeted, customized localization strategy will be necessary to position Project Orion for success in key international markets. However, even the best localization strategy would surely fail if it is not supported by a high quality, culturally sensitive translation of the content.” (86) To determine the localization needs of different language markets the team developed a localization decision matrix which consisted of “three major categories of data points: Language Sensitivity (40%), Language Relevance (40%) and Sun's current localization strategy (20%)” (105) Based on their analysis, the team recommended localizing the software into 9 written languages: Simplified Chinese, Traditional Chinese, Japanese, Korean, French, Spanish, German, Portuguese and Italian. Each language's localization mix was dependent upon the individual needs of the market, with respect to the User Interface, help functions and support. The goal was to develop an approach that best served each language market. TransFRESH is a California based company that has developed a system for extending the life of produce. The TECTROL “Pallet System uses modified atmosphere (É) extending the freshness of commodities such as strawberries and cherries and thereby facilitating longer distance transportation. Generally, the commodities' shelf-life is extended between three to five days compared to if the commodities were to be transported in a refrigerated truck.”(25) The team developed a business plan for TransFresh to improve their business operations in Europe. The European market presented several challenges for the marketing of TransFRESH's TECTROL system due to the reduced timeframe between growers and retailers as opposed to the U.S. market. To improve the customer relations in Europe, the team proposed changes to the company's website, to meet the needs of the local customer: o “Customize site to allow customers to reach the database in their native language, including English, Spanish, French and Italian. o Establish links between URL-addresses such as www.transfresh.uk and www.transfresh.sp to the home Internet page, creating a more united brand image between all TransFRESH (É) o Offer a currency converter (www.xe.com) that can assist customers in finding prices in local currency.” (154-155) Additionally, the machines used in the process differ between the U.S. and European markets, due to differences in customer requirements, specifically with reference to the average volume serviced. In Europe, the company sourced the machines from European producers, due to tariffs and other barriers that would have restricted imports from the U.S. The machines are smaller in size and handle lower annual volumes.
Cisco Systems, Inc. is largest supplier of router equipment in the world. Cisco has currently contracted with the Monterey Institute to develop two business plans during Fall 2003. The first project is visionary in nature, a Level 3, or new ground project in Cisco's terms for the Internet Business Solutions Group. Its domain is the Internet in the year 2010. The client's objective is to first identify the change in scope, configuration, attributes, and most importantly, uses of the Internet over the next several years. Given the accepted vision(s), the terminal objective is to identify global strategies and associated investment and organizational configuration to meet that environment. Cisco has identified seven global scenarios and their determinants. The team will be expected to challenge the existing scenarios and unearth new ones. The second project deals with the worldwide wireless industry for the Service Provider Services Marketing division and this group serves the telecommunications provider market. Cisco has developed and is working on a number of products for business-to-business application, but it is uncertain which will fly, when to introduce them, and in what geographical theaters. They are particularly interested in vertical market applications such as configurations for salespeople, bankers, security officers, or health care professionals. Oracle Corporation is the leading provider of data management application software in the industry. Oracle needs a business strategy for public sectors of the G-8 countries. Specifically they need to identify what a given country's public sector spends, on what functions, and how the budget is spent (e.g., are Medicare software expenditures mostly for reimbursement management?). Additionally, they want to determine both the potential and actual markets, for example, China is huge market but may rely exclusively on internal software resources. They are interested in meta-national approach. The project is exploring the localization needs that would be associated with the software's use globally. Seagate Technology, Inc is the industry leader in disk drives. The project involves use of the web to manage the international logistics of the business-to-business product returns system. Domestic launch for the new system is scheduled for September, and the international roll out is targeted for Q1 2004. This effort will examine international market for prioritization of market entry, language support and localization, and benchmarking what competitors are doing in this field, especially outsourcing versus internalizing.
JIAN designs and markets business planning tools. Currently all of the company's products are software packages, with over 50 products currently available, the core product is BizPlanBuilder. JIAN contracted with MIIS to develop a plan that addressed the company's international market expansion possibilities for the near and long-term. " The five selected countries were divided into two groups based on culture. Group 1 consists of Canada and Hong Kong; Group 2 consists of China, Mexico and South Korea. From this we constructed a rollout plan: since the Group 1 countries are closer to the U.S. in culture, they were chosen as the first markets targeted for expansion." (Executive summary) The Group 2 countries share several characteristics which makes market entry more difficult. "For example, in Mexico, strategic planning is not a common tool among small entrepreneurs.. . Most aspects of doing business are based on trust and personal relationships. . . In order for JIAN to be successful in this market, it must do more than sell business planning software or platform; it must first create the market." (61) In China and South Korea, business planning is part of the process, but in contrast to the United States, "the requirements for format and content are very differe3nt depending on which types of investors are being targeted. Also, since the Chinese and South Korean legal systems are so different, if JIAN decided to enter these markets, it would need not only to translate its products into Korean and Mandarin, but also to modify them considerably to reflect local legal and business realities." (61) Pinnacle Systems is leading supplier of video authoring, storage, distribution & Internet streaming solutions for broadcasters, video professionals, and consumers. Five countries were assessed for market entry/expansion for new product. France, Germany, Japan, UK, USA. The social & cultural aspects of each country were considered when determining which markets to enter into for the client. The team utilized a Comparative Matrix Analysis to determine the favorability of the markets. They also noted that "One criterion for success that is not measured here is the factor of acceptance in the marketplace. This acceptance factor will depend, in large (part), on a variety of subjective criteria, which might be based on motivators that are not quantifiable. For example, does the product create a favorable response in the user as a reaction to color or layout or ease of use? Absent specific market research, the acceptance factor is difficult to gauge." (92-93). The team designed a plan for expansion of the licensing operations into key international markets. The expansion was intended to leverage the existing brand awareness internationally. Key international markets included: Canada, Denmark, France, Germany, Hong Kong, Ireland, Japan, Norway, Singapore, South Korea, Sweden, Switzerland and the United Kingdom. (7) "The international expansion requires competencies related to understanding international markets, identifying licensees, and managing international relations." (11) The IBP team encouraged the Pebble Beach Company to begin by expanding in Canada, because this market allowed for the expansion of existing golf apparel products. "The reasons for this are that the golf apparel does not need to be modified in terms of clothing size and that the cultural similarities favor using the same product line and reduce the challenges to business related to cross-cultural differences"( 71) As the international market strategy progresses, this will allow PBC's operations to take on a more global scope. "Once Pebble Beach Company is established in several international markets, opportunities for more global operations in terms of e-commerce opens up. Collaboration with licensing partners that serves as international distributors can provide the effective distribution capabilities that successful e-commerce calls for. A multi-lingual PBC website will help the customers locate the closest distributor and order products directly online." (71) Although the team suggests that the company begin by marketing a more standardized product (which have been successful domestically), they believe that "after paying close attention to the local response and particular needs of each country or market, the company can start adapting its products to better satisfy the local needs. In addition, international licensees may be able to help in identification of new product opportunities." (80) "SAS is dedicated to providing the world's top financial institutions with the tools needed to deliver enhanced investment products and services to their clients, enabling them to remain innovative and profitable in this constantly evolving market." (4) One of the challenges to designing solutions for High-Net-Worth Individuals (HNWI) is that their needs are different from region to region, which is based on cultural preferences, degree of risk aversion, and legal/regulatory requirements. After extensive research, the IBP team concluded that "Europe and Asia/Pacific are the regions that offer the best opportunity for international growth. . . Economically and politically these regions are sound, large pockets of high net worth individuals are present, and the managed account industry has yet to be dominated by a few key players. Sequoia utilized the IBP team to determine the strongest potential export markets for its distributed generation equipment. The team examined market potential of countries located in Eastern Europe, Central and South America and Eastern Asia. Sequoia manufactures and is a system integrator of prepackaged, pre-fabricated natural gas powered distributed generation (DG) energy modules. The company's target market segment includes grocery stores and multinational big-box retailers as well as shopping centers, hotel chains and light industrial facilities. (13-14) The business plan included an in-depth analysis of the regional energy markets in Latin America, Asia and Eastern Europe. They utilized multiple levels of criteria to refine the best markets for the company's product, emphasizing macro issues including GDP and retail electricity price. The next round of criteria was more specific and focused on natural gas infrastructure, the national use of DG and co-gen equipment. The final five countries were thoroughly analyzed on the basis of national and political issues, the energy market, regulatory issues and the market segmentation of energy consumers in the target range. The final top two countries were Japan and Turkey; this was decided on the basis of three strengths, "natural gas infrastructure; macro and micro economic feasibility, and their regulatory environments." (14-15) The final implementation recommendations were based on the factors which differentiate one country from another and emphasized tailoring the product to meet the market needs of the country. Venture Catalyst Network (VCN) "VCN's vision is to be the premier catalyst facilitating the funding and commercialization of innovative technologies around the globe... Its four business lines (Fund, Syndicate, Source and Consult) help young technology companies to develop their businesses internationally." (4) The team's recommendation for the international rollout of VCN's activities was based upon two factors. The market potential of each country market and VCN's existing business relationships and ambitions.( 53) The service roll out recommendations consisted of five waves. US market and countries with existing relationships, next, English speaking countries (UK, Scandinavia, Australia, Ireland, next "Asian technology powerhouses, many technologies have their origin in low-cost Asian markets. For example, the creation of enterprise software applications is significantly driven by Indian developers. Fourth wave: Western European countries, including Belgium and Germany, as well as Israel and South Africa. Finally, Spanish speaking countries, including Brazil, Mexico, Spain and Portugal . Center for International Trade Development (CITD) Plan for Export of Specialized Farm Equipments from the Central Valley, California This plan was designed to assess export opportunities for small farm machinery manufacturers in the California Central Valley, per the request of the CITD, which provides assistance to small and medium companies when entering into international markets. 25 country markets were assessed for their attractiveness for cattle feeding equipment imports. The regions examined included, Latin America, Central American, the Caribbean, Asia, the Middle East, and Eastern Europe. (Executive Summary) When determining which markets to consider entering, the language spoken in the potential market was a factor. "The number of Spanish-speaking workers in the factories provides manufacturers with a large pool of linguistic capabilities when engaging in exporting to Latin American countries." (39) As a result, the decision matrix placed a higher value on countries where Spanish or English were spoken, over countries where neither language is used (although this only represented 3% of the total evaluation criteria). After the final screens were applied, the top three countries for entry based on the strengths of the local farm machinery manufacturer were Brazil, Argentina and South Korea. The market entry strategy for each market will be customized based on social, political and economic factors which dictate the best way to meet local needs. CISCO Systems- Who will be in the Driver's seat?: Analysis of the Telematics Market Cisco Systems was investigating the future of the Telematics Market. "Telematics, a convergence of wireless connectivity and computing technologies, gives companies an opportunity to emerge in an industry that is estimated to have $42 billion in revenues by 2010."(4) The IBP team examined the key characteristics of 19 markets to determine which met the criteria of "early-adopters" of technology, as they are the best fit for the telematics innovations. Countries which tend to be early adopters, share a set of cultural values which influence their adoption of new and different technologies. "One of the primary objectives of this paper is to identify those leading international markets. While many countries have a keen interest in telematics and the adoption of its applications, there are a select number of countries that have the technological savvy and resources necessary to lead the adoption of telematics. These countries will be identified as the early adopters that drive the "telematics revolution" due to their high penetration and usage of new technologies in addition to their development of innovative applications for telematics. Thus, by focusing on the early adopting countries, Cisco will better understand the main points to leverage."(22) Ernest & Julio Gallo Winery: Latin American Division "The goal of this business plan is to provide E&J Gallo with the following projected values: 1) the size of the wine market in each of the thirteen countries, 2) the optimal product mix for each country market," The project evaluated the Latin American division, focusing on 13 country markets, Belize, Bolivia, Columbia, Costa Rica, Curacao, El Salvador, Guatemala, Honduras, Nicaragua, Peru, Paraguay, Surinam, and Uruguay. Wine is distributed via local distributors, generally, one distributor per country. The distributor is responsible for the placing and pricing of the E&J wines in that country market. (i) For each of the 13 countries, the IBP team conducted in-depth research on the characteristics of the market, including cultural characteristics which influence alcoholic beverage consumption in the market. Utilizing this information, as well as economic, political, and demographic and product sales information, the team was able to make a recommendation for each market that included the recommended Gallo product mix for the country. This customized strategy emphasizes the different tastes and preferences that prevail in the Latin American market. Hilmar Cheese was looking for new international market opportunities which would allow the U.S. based cheese producer to expand. "The future for the cheese producers in the United States will be heavily influenced by their ability to capitalize on the potential of key international markets." The IBP team analyzed the export opportunities for bulk cheese in the Asian market and in Mexico. The five countries that they recommended included Mexico, Japan, China, South Korea and India. For each of the five countries selected for market entry, the team examined the trends in consumer tastes and the trends in cheese consumption. These factors are important when determining the product mix to offer in a given market due to differences in consumption patterns and quantities in country markets. For example, "The Mexican market for imported cheese has grown rapidly in recent years. . . In the market for hard and semi-hard cheeses, imports represent over 30% of the market. . . Traditional and adapted Mexican foods are also extremely compatible with American cheeses such as Cheddar and Monterey Jack." ( 73) By contrast, in the Japanese market, generally natural cheese (which contains live organisms that are used in the fermentation process) are imported to supply domestic cheese producers. "Domestic makers use their own distinctive formulas to blend domestically produced and imported natural cheeses to manufacture various types of processed cheese that are suited to the tastes of Japanese people." ( 90) Monterey County Convention and Visitors Bureau (MCCVB) The intention of this business plan was to attract more international tourists during the mid-week and off-peak season. The two strategies highlighted by the IBP team included the long-stay strategy which emphasizes that the visitor stays in the destination over one week and the web-site strategy. The IBP team identified the three best markets to target with the long-stay strategy, Japan, Germany and the United Kingdom. The marketing message for each country tourist group was customized to reflect the cultural differences inherent in the tourists. o "The message to Japanese travelers should stress; characteristics of Monterey as a safe haven, the mild weather in the spring and fall, beautiful nature, and activities such as hiking and golf. o The message for German travelers should stress: easy access to national parks, historical places, the beauty of the countryside, and theme/amusement parks as primary motivations, while hiking and camping are secondary. o The message for UK travelers should stress; shopping, touring the countryside (vineyards), visiting historical places, water sports and outdoor activities, and visiting national parks.” To improve the MCCVB website to be more accessible for foreign tourists, the IBP team recommended that the website incorporate new features, including Monterey County information that is available in multiple languages, this will improve the international visitor friendliness of the website. This includes recommending that the opening page of the website include information in five different languages. Immediately, the site visitor has the opportunity to choose to continue in their language (English, German, French, Spanish or Japanese), thus improving their understanding of the information and their feeling that it was designed for them. Other recommendations to improve the experience for international site visitors included standardization of the address fields to accommodate differences between U.S. and international addresses and to also include a currency converter for convenience when planning travel. Real Time Systems (RTS) provides state of the art software and hardware solutions "to enhance the business productivity in the manufacturing and service industries." "The goal of the business plan was to provide guidance on how to turn great engineering ideas into a marketable product and help a small company evolve into a strong international organization." (ii) The IBP team examined the U.S. market and several European markets, including Germany, Finland, the Netherlands, Sweden, and Switzerland. Of all the countries analyzed the top three European markets were further analyzed, which included an in-depth market selection process for RTS. The IBP provides information which will affect the success of the business in each of the potential markets and often requires a customized focus for each market that the company enters. In Germany, the IBP team stresses the importance of relationships in the success of the business. "If RTS plans to focus its attention on the German market, it should ensure availability of its support staff and management to maintain close communication with its German clients. One of the views shared by German companies is that US-based companies are not always reliable due to their remote location and short-term orientation on business relationships." ( 75) For example, in the Netherlands, despite the widespread use of English, "it is essential to provide advertising, labeling, and use instructions in Dutch for retail products. If such literature cannot be provided, the U.S. exporter should work with a Dutch importer or distributor to have the products labeled in the Netherlands." ( 80-81)
Cisco Systems: Empowering the Internet Generation The IBP team worked to “identify the first tier markets for Cisco's expansion of the Networking Professionals Connection (NetPro) website.”(13)(The plan addressed in great detail the implementation issues associated with launching a multi-lingual website that needed to meet the needs of users around the world. This required localization of content, as well as internationalization to meet global standards. Through their research, the IBP team identified two distinct segments of localization of the NetPro website. The first category will include “the introduction of local web pages linked from the US NetPro website and accessible by its own URL address, in English-speaking countries and other countries that feel most comfortable with using the community website in English.” (102) The second segment will require the development of “local community websites customized for a particular country” (102), for the non-English speaking markets. For the English-speaking countries, the team took into account that there are cultural differences between English speakers in different countries and stated that the website should be internationalized to be accessible to all English speaking users around the world. This affects the date format, currency symbols, temperature systems, address formats and currencies. ( 107) They recommended a multicultural design team be developed, which will add valuable insight into the design and function of the website(s). Producer of fine handmade gifts and decorative trays and boxes using a unique blend of wood flour and resin, paper cuttings and metal and wood inlays since 1948. "Declining sales in the domestic market encouraged Couroc to explore options in the international market. Due to fierce competition in the US giftware industry, management is interested in exploring new markets to introduce the 52 year-old Couroc trays and boxes as new products." (5) One of the criteria used to determine the best-suited markets for Couroc's products was the importance of gift-giving within the country. "If individuals feel that gift giving is important in their social context, then the more open they will be to purchasing Couroc's products." (45) Due to the inexperience of Couroc's management team and the limited financial resources of the company, the IBP team suggested that export and market entry focus be directed towards Canada. "This will minimize the number of uncertainties and entrance barriers and increase the chance for success. Furthermore, conducting a business in a familiar setting will minimize costs and reduce the idiosyncrasies of localization. (. . .) By exporting to Canada, Couroc will (be) able to minimize shipping, labeling and localizing costs." (53) Although there are similarities to the US market, there are still differences between the American and the Canadian consumer, and Couroc must take this into consideration when developing a product for the Canadian market. "It is recommended that Couroc use a product adaptation strategy, which involves altering the artwork design of the trays to meet local Canadian conditions and preferences. Different levels of adaptation exist, such as regional versions and national versions: The first step of Couroc's strategy is to penetrate the region of British Columbia and the inlaid designs to the preferences of that specific region." (71) Monterey Pasta Company International Expansion “Historically, Monterey Pasta Company has operated domestically. However, heavy reliance on two customers, Costco and Sam's Club, in addition to strong domestic competition, leads Monterey Pasta Company to examine international markets.” The IBP team selected Japan, the United Kingdom, Canada and Mexico as the top countries in their region for export of the product. For each of the final four markets, the team examined the Pasta Market trends that would affect the sales potential of the product and recommended a product/marketing mix that was customized for the market based on consumer tastes and preferences. “Due to the similarity in markets, Monterey Pasta should export a variety of its products into Canada, however it should focus on filled pasts. (É) The high quality and premium taste of Monterey Pasta Company's products, coupled with the fact that fresh filled pastas are not widely available (É) would serve to create a strong competitive advantage for the company.”(66) In the Japanese market, the team suggested that the company give away free samples of the product and target their advertising at women between the ages of 20-40, who tend to have a strong preference for Italian foods. (73) Additionally, the labeling requirements for the Japanese market are significantly more detailed and require more product information. Hayward Lumber Green Building Materials “Hayward Lumber is a frontrunner in the 'green products line' for the retail construction market.”(4) Hayward Lumber has earned the Forest Stewardship Council's recognition for their products, and was seeking to expand into foreign markets. The Business Plan focused on Hayward's market entry strategy for Japan. Due to the emphasis placed on relationships in Japanese business arrangements, Hayward Lumber can utilize the network of sister cities that exist throughout California and Japan. "This is an excellent marketing opportunity for Hayward with the advent of certified lumber is relatively unknown in Japan. Exposure is key for any foreign company pursuing business in Japan. Hayward can utilize these existing relationships and capitalize on the networking possibilities within these organizations." (pg 54) "Hayward's key marketing documents must be translated into Japanese. Furthermore, to facilitate a complete localization program, a Japanese speaking employee(s) needs to be considered, preferably a Japanese national. Documents are not the only materials to be localized. Hayward Lumber must localize their website for the non English-speaking Japanese client. One method to start kick Hayward's new language site is to offer a promotional scheme. For example, offering a free trip to the US to visit the Hayward truss plant." (55) Indian Motorcycle European Expansion The Indian Motorcycle Company “manufactures three lines of heavyweight cruiser motorcycles: the Chief, the Scout and the Spirit.”(3) “Indian targets an affluent niche of riders who want a legendary vehicle, without the image that comes with Harley-Davidson. (É) The largest target market is college-educated men in their mid-forties with incomes over $70,000 a year.” (3-4) Since Indian is targeting a global consumer group, there will be minimal product customization expected, instead, the IBP team focused on determining which European markets had the largest group of individuals that fit the target niche market criteria. The Marketing strategies for the EU will need to be localized to address the cultural and language issues of each country, but the standardization of laws and regulations within the EU will facilitate market-entry for the company. (35) To enter successfully into the German market, it is recommended that the Indian website be improved and the content be localized for European markets. (129) Keen World is a company that has designed a product to help U.S. students (K-12) improve their mathematical skills. "As an increasing number of parents become concerned with the quality of their children's education, the market for supplemental education grows." (1) "The plan is to motivate children to work through a certain number of math sessions by rewarding them with the opportunity to play educational games on the web site's playground. Keen World will charge a monthly fee for access to its on-line education system." (1) The IBP team identified the U.S. market as the first market for the product. If successful, the team recommended that the company consider expansion into the neighboring Canadian market. "Before Keen World positions its product in Canada, it should conduct focus groups, particularly to determine to what extent localization is required. Since it is an educational product for young children, it should be localized into Canadian English. It might also be important to customize the product for Canadian holidays." (100-101) The IBP team suggests positioning it as an American product that is sensitive to Canadian culture. The IBP was designed to identify “which region of the world Monterey County vintners and growers have the best opportunity of entering the wine market, and if already in that market, what actions should be taken to expand their current market share.” (6) After conducting an international market analysis and implementing a selection process utilizing a decision matrix, the team focused on the strategy and implementation for the Asian region, specifically Japan. “The label and packages, if needed, should be changed to cater to the cultural preferences of Japanese consumers (i.e. smaller bottle sizes are becoming popular in Japan). In the last three years, there has been a decrease in the container size of wine products selling in the Japanese market.” (85) “Labels should be translated into Japanese, which is a requirement, and also contain an illustrated description of the wine and its appellation. Additional information, such as food compliments, information about places of interest in Monterey and a calendar of events will be useful for customers.” (85) TelePost offers a set of “cost effective IEC (Internet Enabled Communications) services to small and home offices, which would not be able to afford them from a larger communications company.” (10) The IBP team focused their implementation plan and recommendations on entry into the German market. “Thus, TelePost has an opportunity to successfully position itself by offering its award-winning complete suite of services targeted at middle-end users. However, the product (including billing and service support) should be localized in language, with prices quoted in both DM and Euros. Since German consumers are extremely critical and generate slow acceptance of new services, solutions must be customer oriented and cost effective, and providers must be able to provide 24-hour service.” (164-165) Additionally, in designing the billing service for Germany, the company should be aware that there is very limited use of credit cards. “In Germany, only 5% of all retail sales are paid by credit card with the rest by direct debit card or cash. Many of the e-commerce transactions are carried out via the invoicing system.” (165) Washington Inventory Service (WIS) Market Entry into Europe WIS “is the second largest inventory counting service in the world, operating in five countries. With over 40 years of experience in the industry, WIS uses its proprietary hardware, software and inventory counting processes, and utilizes its large, part-time workforce to efficiently and accurately count its clients' inventories.” (6) The European market presented a significant growth market for WIS and the IBP team addressed the product/process adaptation issues required of utilizing the product in foreign markets. Although WIS will offer the same product in the UK market, the processes will be modified to meet the clients' needs. “WIS will need to adapt the hours when the inventories are taken to the requirements of the UK environment and should anticipate regional differences as well as differences among retail segments.”(64) In Germany, “WIS will have to adapt to German opening hour regulations. (É) Therefore, the advantage of using an outside inventory service does not reside in the retailers not having to close the stores for inventory counting. Instead, WIS should stress that the stores will not have to pay overtime to their own employees.”(82) West Marine “is the largest specialty retailer of recreational and commercial boating supplies and apparel.” (6) They currently ship to over 140 countries, but do not have a physical presence overseas. The IBP team addressed several issues that must be addressed when selling products internationally. When selling products in Canada, West Marine must comply with labeling requirements that stipulate that the product's name must be listed in both English and French. In Japan, West Marine must project a high-quality image throughout the entire customer experience. “The Japanese view of quality includes everything from customer service before and after sales to timely delivery of products. Japanese consumers are used to having products immaculately wrapped and delivered rapidly through the mail and expect the same fast delivery from overseas merchants.” (pg 104) When marketing to the Japanese consumer, “a Japanese-style and Japanese-language catalog with Japanese instructions would be very helpful for customers.” (108)
The company is an aquaculture start-up which currently raises clams and Pacific White Shrimp in a controlled, indoor, freshwater environment. Aquafuture is seeking to determine which markets will be best suited for the sale of the Pacific White Shrimp product. The success of the product depends on the characteristics, tastes and preferences of the market. After examining several countries, the top markets to be considered included Canada, Germany, Japan, & France. The company chose to pursue an implementation strategy in France. The country is considered to be a major consumer of seafood products, additionally; the French demand for seafood exceeds the domestic supply, making the country a net importer of seafood. (113-114) Although many characteristics of purchasing shrimp are similar to the United States, one key difference in France is the language issue. “Since August 1994, the “loi Toubon” requires that all advertising, labeling, instructions and promotional programs be in French.”(152) As a result, the product will require localization to allow it to be sold in the country. “Critical Path's mission is to be a leader in the messaging solutions market by offering a full complement of related services to Web portals, Internet service providers, Web hosting companies and corporations.” (1) The IBP focused on three countries for the initial expansion, Japan, China and the Republic of Korea. They were selected on the basis of market growth and regional economies of scale. For successful implementation in China, “Critical Path should offer basic e-mail with Chinese and English language capability.”(17) Additionally, the IBP team recommends that the company consider utilizing a joint venture strategy when entering the markets in the Asian region, due to the cultural context and differences from the U.S. based company. The focus of the IBP for Illuminations was the specialty candle retail markets in Australia, Japan, Canada, the United Kingdom, France, Germany, Belgium and the Netherlands. To evaluate the potential success of the company in each market, the team evaluated “typical candle usage, trends in retail, home accessories, (and) aromatherapy.” (x) The final markets examined for entry were Japan and Germany. Culture plays a significant role in the use of candles around the world and must be considered when determining how to market candles to an audience. In Japan, gift-giving is an important aspect of the culture and the gift-giving seasons fall into two categories. As a result, “many retailers keep a variety of gift-type sets on hand year round, but during the major gift-giving seasons, gifts are often displayed on shelves at different price points. Gifts that can be consumed are often popular in Japan because of the small living space.” (46) Another important cultural distinction that affects the retail store in Japan is the emphasis placed on packaging and presentation. The preference is to give a gift that has been store-wrapped and displays the store's brand packaging. “In addition, English packaging or labels may increase interest and prestige in a foreign product.”(46) “To maintain brand consistency, English lettering should be included on the Japanese labels of Illuminations' products.” (47) Pronunciation in American English “AmEnglish.com's (AE) products are positioned to facilitate effective and goal oriented American English pronunciation training using an interactive computerized approach. (. . .) This business plan is aimed at identifying AE's position in this industry and recommending an implementation plan for its international expansion.”(Introduction, iii) The CD-ROM to be marketed internationally, “Pronunciation in American English” is designed for non-native English speakers who seek to improve their pronunciation skills. “For different country markets AE will be operating in, it will require more or less localized products depending on the different expectations of the focused target customers. The necessary localization issues for AE will comprise the appearance as well as the content of its products. While the product's appearance can be easily modified, content modification may involve major costs. (É) AE has to select its strategy by carefully balancing its localization efforts to overcome cultural barriers to effective marketing while at the same time capitalizing on the global character of its products.” (63-64) Wyzdom Solutions “main product is Wyzdom, a software solution that allows companies to manage all of their information technology assets, from phones to laptop computers. This software is designed around a database, so that IT managers can track and manage information such as the assets that the company owns, the location of the assets in the office, upgrades of software or hardware and the status of leases on assets within the organization.” (11) The IBP was focused on addressing the market potential in the European market. Based on the research, the team recommended entry into the UK, German and Swedish markets simultaneously. “Although Wyzdom Solutions is not currently prepared to localize its software, there are still language issues that need to be addressed before the company can begin operations in Europe. The two critical issues in localization are technical documentation and help desk services. (É) localization of software is recommended after Wyzdom gains a foothold in the European market.” (149) German and French are two of the major languages used in Europe after English, localization will aid the adoption of the product in the two main country markets of German and French, and will have additional spill-over benefits in Europe. “German will help the company to enter Austria, Switzerland and Luxembourg. Similarly, French localization will remarkably aid Wyzdom Solutions to access French speaking markets in Belgium, Switzerland and Luxembourg.”(149)
Environment Recovery Equipment ERE is seeking to identify international markets in which it can sell its products. The products are designed for use by the oil production and transportation industry in the event of an oil spill. ERE offers three products, including the Harbor Specialist, a complete system containing the recovery unit, barge, power pack, control panel and marine components needed to clean up an oil spill. (11) Although the company's primary focus will be the North American market, they are also considering entry into Japan. “'Packaging' of the Harbor Specialist will be an extremely important factor (in Japan). A characteristic of the Japanese market is the desire for items that bring prestige, respect and professionalism.” (174) The team suggests possible accessories that should be included with the Harbor Specialist when selling in Japan. These could include, “Finalizing the sale with some type of formal presentation of the vessel to the acquiring company or including official clothing accessories when shipping the Harbor Specialist.” (175) IntelliTools is a manufacturer of “computer assistive technology. Dedicated to serving the needs of individuals with disabilities, their main product line consists of IntelliKeys, a programmable keyboard. (É) Seven markets (France, Germany, Italy, Japan, the Netherlands, Norway and the United Kingdom) are identified and their market potential assessed.” (I) The IntelliTools product offerings will necessarily need to be localized for each market that the company enters. The IBP team extensively examines the issues that surround the localization of the hardware and software offerings and whether it is best to utilize in-country or third party localization firms. As an example, “The IntelliKeys keyboard contains a ROM chip that must be localized for Germany, Norway, and the Netherlands in order to support keyboard character sets unique to those markets.” (174) Founded in 1997, this start-up entertainment, event and food company wanted to satisfy the needs of people in smaller cities not served by conventional theaters and restaurants. (7) The product, an expandable 53 ft vehicle, will include a 120 seat movie theater and a 72 seat dine-in Pizza Hut Express. The Mexican market was chosen for MBO's international expansion due to its proximity to the US and the demand for US entertainment, specifically motion pictures. (8) “Fortunately, MBO's product requires minimal adaptation to enter and operate within Mexico. In addition to having a bilingual staff, all signs in English will be translated into Spanish. The products used with in the mobile cinema will change from those used domestically. These products, however, will be obtained from distributors who have previously modified them to Mexican specifications and preferences.” (59) |
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