Wrong approach to Globalization?

Business Opinion — By Shopping Blogs on February 9, 2007 5:15 pm

Wrong approach to Globalization?  

In the current global available business environment and globalization trends, the factors that will contribute to a successful market penetration and domination may become even more complex.
 
Entering new geographic locations that have different social, cultural, moral, legal and environmental sets of rules, brings an inherent multi dimensional dilemma. It is not to say that it becomes impossible to penetrate such new barriers, however, it becomes a more of challenging task to devise a long term and substantial sustainable strategy to penetrate, maintain and dominate a foreign market.
 
Certainly there has to be a differentiation into target market; those geographic locations that are in close proximity with similar ideas, cultures, legal, social and environmental component would theoretically illustrate a lesser degree of difficulty to penetrate and dominate. However, the same attempt to penetrate a different location with substantially different set of rules, will require different sets of strategy.
 
It is important to realize that the current business and political approach to measure and compare other nation states is theoretically and practically greatly flawed. There are many factors that may contribute to flawed theoretical and practical assessment and strategy implementation including cultural and social biased, factoring of irrelevant factors such as corruption, false sense of moral and cultural superiority, arrogance, lack of fundamental understanding and most importantly the actual approach to understanding differences by allowing non natives to provide the comparative basis of fundamental differences.
 
Naturally, unlike social sciences that rely on quantitative and qualitative approaches to examine scientific hypothesis, the actual real world implementation will require a fundamental and through understanding of uniqueness and cultural differences that will ultimately determine the value and success of a long term strategy. Though it is virtually impossible to find comparative analysis of debuted attempts to successfully analyze past performances in penetration and domination of foreign markets, it is easy to find anecdotal evidence of past failure, including Walmarts’ and Burger kings’ attempts in simple penetration attempts into Germany. 

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Tags: Globalization