دانلود رایگان مقاله درس های آموخته شده از شکست بین المللی برای توسعه و موفقیت

Abstract

Many retail and restaurant companies adopt international expansion as a strategy to take advantage of business opportunities presented by target markets. Common objectives include increasing revenue, escaping a hypercompetitive or saturated home market, entering an emerging or lucrative market, and leveraging domestic capabilities in a bordering country. Success in international expansion is not guaranteed, however; the business world is littered with failures. In this article, we examine the international expansion failures of five service companies that opened physical facilities in a foreign country: Target, Tim Hortons, Best Buy, Tesco, and Walmart. While a variety of factors led to these failures, some common causes have been identified. These include a lack of understanding ofthe purchasing characteristics of consumers, underestimation of the local competition, supply chain issues, and poor strategic decisions regarding facility location and the rate of expansion. Not all international expansions are failures, though, and herein we also present the success stories of Aldo, Carrefour, and Nordstrom. These companies understood customer preferences and focused on location issues and their supply chains. Based on the aforementioned failures and successes, we offer guidance for companies looking to expand their business operations via a physical presence in a foreign country

5. Conclusion

International expansion of physical facilities can have great benefits. It can help companies expand into new markets, generate larger customer bases, and improve sales. At first glance, it seems like international expansion is a strategic necessity for large companies. However, it is accompanied by a large amount of risk. Even the most experienced companies can make costly mistakes that lead to failure and the loss of millions or perhaps billions of dollars. It is even more critical for small to mediumsized companies to be successful at an international expansion because many times these companies do not have access to extensive financial resources; one mistake could finish the business entirely. No matter the size of the company, an international expansion failure can lead to degraded business operations. Funds that otherwise could have been used for product/service innovation, process improvement, and marketing campaigns are no longer available. Extraction from the target country is a distraction from running the business, and the company’s image can be tarnished by negative press. Contrary to common belief, there is no set plan or diagram outlining how to expand successfully. A wide array of factors can contribute to the failure of a prominent company internationally, as exhibited by the failures of Target, Tim Hortons, Best Buy, Tesco, and Walmart. These firms did not fail due to one particular reason; they all struggled with multiple, different factors that led to unexpectedly disappointing performance. Likewise, a variety of factors were responsible for the international expansion successes of Aldo, Carrefour, and Nordstrom. However, these three firms did share one common and critically important denominator: an understanding ofthe preferences oftheir customers in a given geographic location. Yes, the allure of international expansion is great, but companies must also be aware of the inherent risks. Companies need to conduct extensive research, analyze the risks and their impacts, and do their best to fully understand the marketplace they are entering.