Global Business Strategy, 2nd Edition

CHAPTER 8

Globalizing the Value Proposition

Introduction

Some managers seem to think that what works in their home country will work just as well in another part of the world. They take the same product, the same advertising campaign, even the same brand name and packaging, and expect instant success. In many cases, the result is failure. Consider the following classic examples. Coca-Cola had to withdraw its two-liter bottle in Spain after discovering that few Spaniards owned refrigerators with large enough compartments to accommodate it. General Foods squandered millions trying to introduce packaged cake mixes to Japanese consumers. The company failed to note that only 3 percent of Japanese homes were equipped with ovens. General Foods’ Tang ...