Question

Identify two United States companies that have entered the international arena ( ex. Google, FedEx Southwest Airline), and report their successes or failures in offering their products to the international market. What financial risks, if any, have they incurred throughout the process?

Answer 1

Starbucks

Starbucks has more than 24,000 stores in 70 countries. The company first open its doors in 1971 at Seattle Pike Place Market.

Certainly the company has been successful at the international market due to his high quality product and environment of the coffee store where thousands of people enter every day to buy a cup of coffee, have casual meetings and work using their wireless connection.

The key to the success according to Starbucks is choosing the correct international partner on each country they open operations, the company don’t just give away their brand, it has to pass an inspection to make sure the store will provide the best coffee of the world.

Wal-Mart

Wal-Mart is the biggest retail store in the US with presence if most of the countries in the world, however I would like to report about the failure Wal-Mart had trying to operate at Germany and losing about 1 billion dollars on the process.

The first problem was the cultural habits, Germans well not comfortable with having old people greet them at the door and they were not impressed with been welcome with a good morning.

There were also economic differences, for example you can’t sell below cost in Eurozone countries just to run your competition and this helps to level the playing field, giving small companies to compete.

Abusing the workforce with falling wages and expect the government to subside the workforce with food stamps was another problem for the country.