In this essay, I will be focusing and discussing on major challenges faced an international business due to differences in culture at the country or region the business is or was operating. For this essay, I have identified Best Buy Co Inc as one international business and a case study that had faced major challenges in their operations in the United Kingdom. Due to the major cultural challenges faced by Best Buy Co Inc, they had since ceased their operations in the United Kingdom and their venture there is deemed as unsuccessful. Best But Co. Inc was incepted in 1996 in the United States of America. It is a leading multi-channel worldwide retailer and technology product and services developer. In 2010, Best Buy forayed in to the United Kingdom with a joint venture with UK-based mobile phone retailer, Carphone Warehouse after a 50% purchase of The Carphone Warehouse’s retail division. As the world is plunged into a recession during that period, Best Buy’s initial plan to enter the market in 2009 was pushed back and it seems like they had ran into trouble even before they started.
Best Buy failed due to a few major challenges that they faced during their venture in United Kingdom. To name a few, they entered the market in United Kingdom when the world is experiencing a recession. They are also overly ambitious in aiming to establish over 200 megastores in the United Kingdom and they faced major challenges in the shopping culture of the English consumers and the far-flung locations of their megastores play a part in their failure too.
When Best Buy enters the United Kingdom market in 2009, much of Europe is experiencing and is affected by a recession. While the British pound is still one of the strongest financial economies in the world, they are still nonetheless affected by the recession in Europe. It is understandable that when a recession hits, consumers tends to go easy on their spending. Being a giant American electronic...