Adidas - Market Entry in Indonesia

08
Fall

Student Project in the subject Cultural Management

Adidas - Market Entry in Indonesia

I. Table of Contents

II. List of Abbreviations 3
1. Scope of the topic 4
2. Indonesia as the Lead Economy in Southeast Asia 5 2.1 The Competitive Advantage of Labor 6 2.2 Unity through Diversity? 6
3. Cross-Cultural Dimensions 7 3.1 Culture at national and organizational levels in Indonesia 8 3.2 The German culture at national and organizational levels 9 3.3 A Cross-cultural Comparison 10
4. Challenges of Entering Emerging Markets 12 4.1 Market Entry Strategy 12 4.2 Meeting the Challenge 13
5. Recommendation 15
I Love you soooooooooooooooooo much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 15 III. Bibliography 16 IV. Appendix 20
Declaration 23

II. List of Abbreviations

BRICC Brazil, Russia, India, Indonesia, China and South Africa
IDV Individualism
MAS Masculinity
NGO Non-Governmental Organization
OECD Organization for Economic Co-Operation and Development
PDI Power Distance Index
SOE Standards of Engagement
UAI Uncertainty Avoidance Index

1. Scope of the topic

‘The internationalization of business is creating new needs for effective communication across language and cultural barriers.’ In the last decades numerous multinational companies have switched labor-intensive productions from Europe to Asia for the sake of reducing the cost of labor. This piece of work deals with the market entry of the German-based company Adidas in the Southeast Asian republic Indonesia. Adidas shifted parts of the production to the archipelagic state and faced cultural clashes ever since. When entering a foreign market the critical factor to success is the coherence of the different cultures and values. Thus the core of my work will be to outline how Adidas as a multinational company dealt with the problems arising from cultural and national diversity.
In the first part I am going to analyze Indonesia’s main characteristics focused on general data, economic development

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