International Market Entry – 3 False Assumptions

by | Apr 17, 2012 | International Business | 275 comments

(3) Imported goods are often better.

Evidence of this is that Americans often prefer to drink French water, drive European cars, wear Italian suits and buy Swiss watches. However, Japanese consumers may be concerned with how Japanese a product is. European firms may wonder about the factories that foreigners will cause to shut down. Countries such as China make their own computers and DVD players to stimulate the Chinese industry.

(2) Money is the ultimate reward.

Many foreign business people are motivated by status, power and social responsibility. In Poland, it’s more prestigious to be a large employer than to be wealthy. The factory boss won’t fire his neighbors to make a few extra dollars. When looking at an international marketing problem, remember money isn’t the be all and end all.

(1) The No. 1 assumption: “It worked in our market. It should work in theirs.”

Wow, It would be easy to write an entire book on this one single market entry assumption.

We sell products in colors that are taboo.

We don’t recognize that there may be seven- or even 15-step distribution chains in some markets.

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