Thinking of language and cultural barriers, a number of big retailers have failed in their expansion plans possibly through not developing good local relationships.
These include Walmart who tried to launch in Germany and the IKEA Group who also failed in Japan when it first tried to enter this market. The main reasons for the failure of IKEAs international marketing strategy were the different lifestyles. Japanese customers were not ready for flat pack living and not convinced by assembling their own furniture. Could localization have helped the company in this market?
However, there are also plenty of success stories including Lidl and Aldi where the export strategy of low cost and identical stores works in almost all markets.
What does the group think are the key advantages and disadvantages of each export mode and are some barriers (such as cultural) more relevant to international marketing than others?
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