There are two types of exporting: passive and aggressive. A passive exporter waits for overseas orders to come in while an aggressive exporter develops market entry strategies. An example of successful implementation of passive exporting would be the “sellers” on eBay. They are able to advertise their products on eBay and wait for orders to come in. There are sellers and buyers from all over the world interacting. eBay has successfully used the information technology explosion to go global through e-commerce. Dell has also successfully implemented the globalization strategy by being fully integrated.
Dell has factories in Ireland Brazil, China, Malaysia, Tennessee, and Texas and it has an assembly and delivery system from 47 locations around the world (Deresky, 2008, page 222). Regionalization, on the other hand is a global entry strategy in which business link their local markets to a particular region, thereby allowing more local responsiveness and specialization (Deresky, 2008, page 221). This strategy is more effective when your products or services need to be adjusted to adequately meet the needs of the local customers.
A discussion of Wal-Marts failures (Deresky, 2008, page 203) clearly illustrates the need for some companies to fully understand and address the differences of cultures in different regions. For example, in Seoul, the typical housewife does not own her own car and takes the subway to shop. Therefore, Walmart’s American style of offering large amounts of goods packaged in bulk would not interest a housewife in Seoul. Also, the racks in Korea needed to be shortened so that shoppers there could shop without needing ladders to reach items that were too high.
In regionalized companies top managers within each region run their subsidiaries as quasi-independent organizations, making them more responsive to the needs of their customers. A great example of a successful regionalization strategy are McDonald’s, which has restaurants in 119 different countries, and Yum! Brands (Brandau, 2011), including Taco Bell, KFC, and Pizza Hut. Yum! Brands is so successful, in fact, they are now developing new markets in India, Russia, and Africa. In 2010 60% of their new restaurants were in emerging markets (Yum! Brands RSC).
It is more common for businesses to utilize some level of regionalization even when using predominantly a globalization strategy. Car makers may make almost the exact same car in different world markets, but they will still have to have the steering wheel on the left or right, depending on country they are serving. In advertising campaigns, some ads will not translate successfully from one language to another. Bibliography Brandau, M. (2011, September 9). China: A look at strategies from McDonal’s Yum! Brands. Retrieved January 23, 2012, from Nation’s Restaurant News: http://nrn. om/article/china-look-strategies-mcdonalds-yum-brands Deresky, H. (2008). International Management: Managing Across Borders and Cultures. Upper Saddle River: Pearson Education. Toyota’s Globalization Strategies. (n. d. ). Retrieved January 23, 2012, from http://www. icmrindia. org/casestudies/catalogue/Business%20Strategy2/BSTR094. htm Yi, H. (2009, January 12). Crafting a Successful Globalization Busienss Strategy. Retrieved January 23, 2012, from http://www. lingomedium. com/wordpress/crafting-a-successful-globalization-business-strategy-195