Every company needs to assess several internal and external environmental elements before it can decide whether to expand into foreign markets. The most important external environmental element a company must consider when planning to enter a foreign venue is culture. Traditions and cultures of every country are crucial and the main factors which will build the attitude towards a specific company or business. For example, Chine is the country of tea. They have the specific tea culture and history. When Starbucks wanted to enter the market of China, their marketologists studied it very carefully. They ruined the tea stereotype. Now it is one of the most popular brands in China. "Coffee represents the change," says Wang Jinlong, president of Starbucks Greater China (Starbucks in China). They oriented on the young people who wanted the social changes and are the only children in their families. Their slogans were “Spend more time with your friends and family!” (Starbucks in China).
Culture influences the supply and demand in every country. For example, we can’t sell the steaks in India, because most of them are producing from the meat of the cows. These animals are sacred there. Pig meat doesn’t sell in Muslim countries. Alcohol ads are also forbidden in Muslim countries.
So, when planning to enter a foreign venue, a company must analyze the culture of the target country, its supply and demand, the history of the country, its geographical position and mentality. Sometimes the companies and brands are crucial powers in different countries. They can change the mentality and attitude towards different things, products and deeds, but every company must respect nations’ cultures and traditions.
References
Kotabe, M. (2009) Global Marketing Management. Retrieved from : https://www.scribd.com/doc/7008360/Global-Marketing-Management
Starbucks in China. (2006) Retrieved from : https://brainmass.com/business/business-culture-in-china/starbucks-in-china-490837
