The world is not flat
Contrary to popular belief, the world is not flat. The way that people behave varies significantly from country to country, differing each time from the US. And this matters when it comes to new market entry.
Many companies face this issue
Many companies face this issue. For some reason, numerous successful, well managed, organizations, like Wal-Mart, eBay, and Toyota, have incorrectly believed that the world really is flat. As a result, they have all made similar, very basic, mistakes when they left the comfort and security of their historical markets and entered new markets.
Language is a problem
As we will discuss part of the problem is language. Although English is the most widely spoken second language in the world, it varies significantly from country to country. American English is not the same as British English, which in turn differs from Indian English, while Jamaican English is different again, etc.
But culture is the real problem
However, the issues executives face when they enter new markets go way beyond language. In fact, the main reason why executives run into problems in new markets is not language, but because they do not really understand how people think and behave in other countries. In other words, they do not know the local cultures. It is these often unwritten cultural rules that trip executives up when they enter new markets.
The five steps to success
Because culture is the real problem in entering new markets, the key to success in new market entry is understanding the culture of each country you want to enter. In Treitel Consulting’s experience, there are five steps that anyone can take that will significantly increase their chances of new market entry success in virtually any new country. They are:
• read websites, blogs, and newspapers about / from the country
• talk to people who already know the country and its culture
• watch locally produced TV shows, (but not CNN)
• go for a walk
• prepare for the language barrier
Step 1 - Read websites, blogs, and newspapers about / from the country
Before doing business in any new country, read websites and blogs about that particular country. Fortunately, there are websites and blogs written about almost every country in the world, describing its history, culture, language, religion, politics, and local business customs.
If websites and blogs do not give you enough background information, try the local press. In most countries, local newspapers and magazines can give you a good view of what journalists in that country consider to be relevant and newsworthy.
Step 2 - Talk to people who already know the country and its culture
Don’t reinvent the wheel. Talk to people who already know the country and its culture before you try to enter it. Find people who have done business in-country, or who originate from there. Have them tell you how business is done in-country, what traps to avoid, and how to be successful. Ask them to share with you the essential, but to them quite obvious, information that you need to know about doing business in-country.
To give just one obvious example, in many Latin American countries, it is quite normal for men to give each other an abrazo (body hug). I would not, however, recommend trying an abrazo in England. Armed with this kind of information, you will be in a much better position to succeed internationally, no matter which country you may happen to be in.
Step 3 - Watch locally produced TV shows, (but not CNN)
Watch locally produced TV shows. Many of these shows are available on the internet, or on one of those obscure cable channels most people never watch. They can help you understand crucial aspects of the local culture, such as:
• how people ask questions
• how people interact with each other
• what makes people laugh and smile
Of course, you will have a much greater opportunity to watch locally produced TV shows when you travel to the countries you intend to enter. But, unless you happen to be traveling to the US or the UK, never ever watch the BBC or CNN. This is because watching the BBC and CNN will keep you, psychologically, in the UK or the US, with little chance of absorbing, let alone understanding, the local culture.
Step 4 – Go for a walk
When you travel to the countries that you plan to enter, go for a walk. Take a stroll or car drive around the neighborhood. If you keep your eyes and ears open you will be amazed at how much you can pick up from a simple short walk or drive.
To give just one obvious example, a few short walks in Tokyo taught me a great deal about such factors as the local dress codes, commuting habits, the role of women in society, and the hours people really work in Japan.
Step 5 - Prepare for the language barrier
As mentioned previously, English varies significantly from country to country. The same thing is true for Spanish, French, and any other widely used language. Be prepared for those language differences. (To give an example of a company that is prepared for these language barriers, Disney produced four Spanish language versions of The Incredibles, with Argentinean, Castilian, Colombian, and Mexican Spanish language versions of the movie. Each version featured local celebrity voice-overs, with country specific dialog.)
If you plan to enter a non-English speaking market, learn a few words of the local language. It will show that you care about the local culture. Although people vary significantly around the world, I have found one thing never changes. That is, if you show people that you care enough about them to have taken the effort to have learned a few words of their language, then they feel much more positively inclined towards you. They are much more likely to trust you, and to share with you what you really need to know to do business with them. In the end, that is the starting point of new market entry success in any country, anywhere around the world.
© Copyright Treitel Consulting 2009. All rights reserved.
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