DOMESTIC SUCCESS AND GLOBAL FAILURE
The objective of this assignment is to examine the discrepancy between domestic condition and global conditions – product that does well domestically does not guarantee a success in another country.
Instruction: 25 points When companies succeed with their product launch domestically, the natural course of consideration is to expand the distribution territory and sell those products to different countries aiming for additional return on original investment.
Failure to do comprehensive global research can be the root cause of international expansion failures. Certainly, other factors, such as financing, operations, legalities and regulations, political and economic changes, and competition may also contribute to failures.
For this assignment, we will only focus on products that failed due to company’s lack of understanding of consumer behaviors, perceptions, and usages, which resulted in the failing to make necessary adjustments when entering foreign market.
Research a successful U.S. product that succeeded domestically but failed in a foreign market in the last 5 years. You may consider:
· Product/Service that failed in the first foreign market and retreated
· Product/Service that failed in the first foreign market, learned from the mistakes, and entered a second market and succeeded
· Product/Service that entered multiple foreign markets simultaneously, succeeded in some and failed in the others
For submission and presentation in class, research the following questions. College level research and critical thinking responses are expected. MLA citation required.
1. Name of the Product/Service that failed
2. Name of the country (countries) entered
If multiple countries were entered, explain the following for all the countries the company entered. If one strategy was used for all countries, describe it in the following questions. If multiple strategies were used for different countries, describe those differences.
3. Pricing Strategy utilized
4. Distribution Strategy utilized (Supply Chain if that affected the failure, how the Product/Service was distributed, where the product/service was sold)
5. Promotional Method and Message utilized
6. Cost of Research conducted prior to the launch (assess the company’s commitment to research)
7. Content of Research (did the company ask the right questions to research)
8. Research findings before Launch (was the finding all green light, or did the company ignore any red flags to rush the product launch to garner first mover advantage or other reasons)
9. Your detailed analysis of why the Product failed in that foreign country (countries)