Resistance to Cultural Change
1) Please explain: How “resistance to cultural change” can influence international product introduction?
Culture in the context of marketing can be seen an aggregate of customs and habits shared by a group of people. It affects consumption patterns of consumers considerably. These practices in concrete market can’t be changed easily by any brand. Brands need to adopt their strategies and communications to cultural philosophy and find the balance between standardization and customization. If they do not, they are likely to fail in Internationalization of products.
2) Please provide 2 detailed examples of real companies that have faced this situation and have failed. Why their strategies didn't work?
Failure of IKEA in Japan (1970s)
IKEA is Swedish furniture retail company famous all around the world. It has stores in 38 countries by now and offers well designed and functional products at low prices. This strategy was the key of success in most of its international markets. This strategy was the key of success in most of its international markets. Japan was the first country in Asia that IKEA tried to enter in the 1970s. However, IKEA had to leave the Japanese market in 1986. The failure of the strategy can be explained by significant differences between Swedish and Japanese culture. The success of company on in so many markets reduced the level of uncertainty and led to early expansion. Japanese market is unique and requires the the high level of adaptation, which IKEA underestimated. For example, consumers weren’t used to the IKEA concept of do-it-yourself. IKEA should have spend more time on understanding local specifics and employee. For instance, they could employee local people from the very beginning.
Failure of Kellogg’s in India
Kellogg’s is a popular producer of cereals, cookies and snacks and one of the leaders in the cereal industry. In 1994 the company decided to launch its most successful brand, Corn Flakes, in India. However, dietary
Culture in the context of marketing can be seen an aggregate of customs and habits shared by a group of people. It affects consumption patterns of consumers considerably. These practices in concrete market can’t be changed easily by any brand. Brands need to adopt their strategies and communications to cultural philosophy and find the balance between standardization and customization. If they do not, they are likely to fail in Internationalization of products.
2) Please provide 2 detailed examples of real companies that have faced this situation and have failed. Why their strategies didn't work?
Failure of IKEA in Japan (1970s)
IKEA is Swedish furniture retail company famous all around the world. It has stores in 38 countries by now and offers well designed and functional products at low prices. This strategy was the key of success in most of its international markets. This strategy was the key of success in most of its international markets. Japan was the first country in Asia that IKEA tried to enter in the 1970s. However, IKEA had to leave the Japanese market in 1986. The failure of the strategy can be explained by significant differences between Swedish and Japanese culture. The success of company on in so many markets reduced the level of uncertainty and led to early expansion. Japanese market is unique and requires the the high level of adaptation, which IKEA underestimated. For example, consumers weren’t used to the IKEA concept of do-it-yourself. IKEA should have spend more time on understanding local specifics and employee. For instance, they could employee local people from the very beginning.
Failure of Kellogg’s in India
Kellogg’s is a popular producer of cereals, cookies and snacks and one of the leaders in the cereal industry. In 1994 the company decided to launch its most successful brand, Corn Flakes, in India. However, dietary