How Firms Adapt Their Products & Communication Strategies When They Go Abroad

Introduction to Global Market Entry Strategies: The speaker discusses ways companies can enter new global markets by exploring product and communication strategies. Straight Extension Strategy: Companies may use the straight extension approach, where they maintain the same products and communication strategies as in their home market. Examples include global brands like Coca-Cola and McDonald's. Communication Adaptation Strategy: In cases where the product remains unchanged, companies might need to adapt their communication strategies based on cultural, language, or legal differences in the new market. The speaker highlights potential challenges, such as language barriers and cultural nuances. Product Adaptation Strategy: Some companies maintain their communication strategy but adapt the product itself to suit the local market. The example given is Ford, which sells cars globally but may need to adjust certain features, like the steering wheel placement, based on regional preferences. Dual Adaptation Strategy: The dual adaptation strategy involves modifying both communication and product strategies to better fit the new market. The speaker shares a personal experience with Levi's jeans in Germany, illustrating how a brand may need to adjust both its product offerings and communication style to resonate with local consumers for optimal success.