Chipotle Case
I believe companies fail in the international market because they’re too confident about their success in the local market and because they do not take into account the cultural, political and economic differences and possible rivals that can represent pressure or rejection of the market they want to explore. Also, they do not use the right strategies and approach to reduce risks or get the benefits of such market. In the case of Chipotle, I believe the company failed to appeal its menu to the British community. Just imagine if an authentic Chinese restaurant chain decide to offer real Chinese food at their Americans clients, I’m more than sure they will close business due to the dishes American are not used to see as Chinese food. When
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I believe the variety and product lines that this company offers to its local customers, might help reduce pressure of rivals and have more chances of attract customers in the international market. The company already ships a lot to merchandise globally. Customers in this specific segment of market, do not have much too lose if they want to try Macy’s products, but Macy’s must design a reward program to engage with customers or find other way to catch customers in a new country. Also, there are many Americans working overseas and many tourists that came to US and might miss the store. To start, the company can track what countries they ship the most and then study the its local market. Then after selecting potential countries, the company must look at the biggest potential competitors in that market, what products are more used or purchased, customer preferences, customs, labor and employment law, political risks, the economic conditions and marketing practices. Then, I would either hire an expert in the market or I will try to partner with a company that can help Macy’s to acquire new knowledge and techniques of sale for that specific market. The company can start by applying a global strategy to see how is perceived by the international market. This will maintain the company’s principles and concept intact. Also, this strategy involves low costs due to scale economies, keeps the benefit of a global brand and reputation, and can lead to greater efficiencies. However, it does not really address local needs, but the company might offer the products that they consider appealing to the local community, based on the study implemented prior the decision (Thompson, Arthur, Peteraf, Gamble, M. J. and A.J. III., 2012, p.
I believe the variety and product lines that this company offers to its local customers, might help reduce pressure of rivals and have more chances of attract customers in the international market. The company already ships a lot to merchandise globally. Customers in this specific segment of market, do not have much too lose if they want to try Macy’s products, but Macy’s must design a reward program to engage with customers or find other way to catch customers in a new country. Also, there are many Americans working overseas and many tourists that came to US and might miss the store. To start, the company can track what countries they ship the most and then study the its local market. Then after selecting potential countries, the company must look at the biggest potential competitors in that market, what products are more used or purchased, customer preferences, customs, labor and employment law, political risks, the economic conditions and marketing practices. Then, I would either hire an expert in the market or I will try to partner with a company that can help Macy’s to acquire new knowledge and techniques of sale for that specific market. The company can start by applying a global strategy to see how is perceived by the international market. This will maintain the company’s principles and concept intact. Also, this strategy involves low costs due to scale economies, keeps the benefit of a global brand and reputation, and can lead to greater efficiencies. However, it does not really address local needs, but the company might offer the products that they consider appealing to the local community, based on the study implemented prior the decision (Thompson, Arthur, Peteraf, Gamble, M. J. and A.J. III., 2012, p.