Blue Oceans Everywhere?

Blue Ocean Strategy is a book that has sold over one million copies. Why? Because it presents a simple attractive theme coupled with a cover depicting a wide-open ocean of opportunity. In blue ocean markets, there’s ample demand and opportunity for growth that’s both profitable and rapid. Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space, or a "Blue Ocean", rather than compete head-to-head with other suppliers in an existing industry. While there is competition, the pie is huge, with a piece for all at the table.

Key Cultural Components in International Business

Cultural awareness is key in any international business activity. Cultural divides should be accounted for in marketing, negotiations, product design, and other important decisions. One must analytically consider the best way to promote a product given the target audience. It is argued that differences among cultures can be explained according to four dimensions of culture:

1. Individualism – “I” consciousness vs. “we” consciousness

2. Power Distance – levels of equality in society

3. Uncertainty Avoidance – need for formal rules and regulations

4. Masculinity – attitude toward achievement, roles of men and women

When Start-ups Start Up Internationally

Throughout the years, I have consulted to a number of start-up companies and over time, I have noticed that most start-up companies experience the same types of challenges in international markets, and usually they are very different from those of established companies.

First, many start-ups operate in narrow niche markets that often don’t exist in their home countries, so that going international is not an option, but a built-in necessity. As early internationalizers, however, they often are still in the process of developing their technologies, products, or services. As we have learned from Igor Ansoff more than 50 years ago, it’s probably not the best thing to be in a place where new product meets new markets. Start-ups therefore must make sure that they are ready before they approach markets, especially international markets where enough will go wrong even without failing value propositions.

Second, much of the start-ups’ resources go into research and development. This doesn’t only divert resources away from much needed business development activities, but it also breeds a certain mindset that values scientists and engineers more than marketers and business developers. This often creates market myopia.

The Chevy NOVA Myth

The Chevy NOVA Myth

If you have ever taken an international marketing or international business class, it is not unlikely that you’ve heard how Chevrolet blundered in Latin America because of poor translation. Chances are, if you are an instructor who teaches these classes, you will have told this story to your students.

For those of you, who don’t know: as the story goes, a particular Chevrolet model, the Nova, supposedly did poorly in Spanish-speaking markets in Latin America, most notably in Mexico and in Venezuela in the 1970s. As can be read in many widely distributed international business textbooks the reasons seems to have been that No-va roughly translates into “doesn’t go” (i.e. “doesn’t drive”) which, of course, can’t be a very appealing name to buyers of new cars. Well, unfortunately, none of this is true, or at least it is highly speculative and gravely inaccurate.