Compare and contrast companies entrance strategy and cross cultural challenges

Compare and contrast companies entrance strategy and cross cultural challenges

Your task is to research each company’s entrance strategy, cross cultural challenges and business results specifically in the markets above. Then, utilizing a compare and contrast approach, discuss the three companies to address the following:

  1. What was the companies’ globalization strategy at the time they entered these markets?
  2. Using the Framework on the Essential Elements of Culture (Ch. 3) Identify and evaluate the key cross cultural challenges these companies faced in the new country. Include an evaluation on how they differed from their home markets. Identify the relevant Models of Culture (Ch. 3) that illustrate these challenges.
  3. Identify and evaluate the business results. Regardless of whether they were ultimately successful or not in these instances, in your view, what did they do right? What did they do wrong? How did these actions influence their results?
  4. What lessons (other than ‘cultural adaptation is key’) can be gleaned from these three companies’ experience? If you were a consultant working for another retail company interested in globalizing their business, what recommendations/advice would you give them?


Answer preview:

One of the main cultural challenges faced by the retail store was the membership fee. Would the market be willing to pay a membership fee for groceries? Another main challenge was that Costco in the United States used coupon discounts as a promotional strategy. In Australia, such were only used for fuel. Minahan et al., (520) also asserts that shopping in bulk would never fit the Culture of Australians, as about 17% went to supermarkets once a week for the supplies. Perhaps, the success of Costco would be attributed to the adjustments they made including flexible payment options, packaging, internet buying and enhanced security.