As companies expand beyond their domestic borders, it becomes increasingly important to have a solid international business strategy. The approach taken by successful companies varies depending on the market conditions, competition, and business model adopted. This article examines some international business strategy examples that have yielded great results for companies.
One successful approach is to establish a strong local presence in the market. For instance, Starbucks entered China with a strategy of partnering with local companies and creating a unique menu tailored to Chinese tastes. This approach has paid off, with Starbucks being the top foreign coffee brand in China, serving 150,000 customers daily in over 3,800 locations.
Another approach is to follow a global standardization strategy by offering a consistent product or service to customers worldwide. Coca-Cola used this strategy to become one of the world’s most recognized brands. The company has a single formula that is used to produce its beverage in more than 200 countries. This consistency in branding and taste has helped create a strong global presence.
A third approach is to target a market niche and offer specialized solutions. Caterpillar, a manufacturer of construction and mining equipment, for example, has positioned itself as a leading provider of diesel-electric hybrid mining trucks. By focusing on a niche market that is environmentally conscious and values efficiency, Caterpillar has been able to create a strong competitive advantage.
A fourth approach is to innovate locally by customizing existing products to meet specific market needs. McDonald’s, for instance, localizes its menu by offering products that cater to the local palate. In India, McDonald’s offers the McAloo Tikki burger, made with a patty of potatoes, peas, and spices. This approach has helped McDonald’s build a strong brand in markets where there is a high level of consumer preference for local flavors.
In conclusion, companies need to adopt a flexible international business strategy that takes into account local differences and market conditions. Successful companies have found that a combination of localization, standardization, niche targeting, and customization can yield great results. The key is to have a deep understanding of consumer needs and preferences, a clear understanding of the competitive landscape, and the ability to execute on the chosen strategy.
