Entering foreign markets comes with unique challenges. Many global companies tend to overcome these challenges by minimizing foreignness and assimilating into the local environment. However, maintaining and embracing foreignness can yield unexpected advantages. Whether it’s using your outsider status to penetrate the local labor market, establishing strong associations to build credibility, or forging strategic partnerships to foster mutual international growth, foreignness can indeed be a competitive advantage. By adopting a nuanced approach that recognizes and leverages foreignness, companies can not only successfully navigate uncharted territory, but thrive in it.
Expanding into an international market comes with many challenges for any company, especially since it is “foreign”. As an outsider, they often struggle with unfamiliarity with the local business environment and cultural differences, face credibility issues in attracting customers and suppliers, and have fewer resources compared to local companies. For example, when Uber entered the Japanese market, its disruptive model clashed with the local business model. Rules A culture that prioritizes playing by the rules. Similarly, Indian ad tech company InMobi once faced obstacles in expanding in China where brand recognition was limited. Even global coffee brand Starbucks was overshadowed by local coffee chains. illycaffe It is the largest in Italy in terms of store expansion and resources.
