A strong, scalable business model is a major advantage for multinational companies (MNCs).
In addition, these companies typically have:
- An extraordinary depth of management talent that allows them to out-think the competition and survive changes in leadership.
- The best advice from their global media, advertising and research agencies.
- Global Research and Development capabilities that provide a constant stream of innovation and can readily adapt existing products and services to meet new market needs.
- An understanding of what is likely to work in a new market based on experience elsewhere.
- Big marketing budgets with which to establish their brands. If their first attempt to enter a market fails, they have the resources to try again, using research to understand where they went wrong and how they might do better.
MNC brands can succeed at disrupting the status quo in a new market by following five steps:
- Adapting products and services to meet local needs and tastes
- Solving the local value equation through product and pricing strategies
- Creating a strong presence and a distinctive identity
- Adopting more aggressive point-of-purchase tactics
- Getting as close to the local culture as is possible
The Global Brand discusses these steps in more detail before going on to consider general practices that will help grow a successful global brand.
One of the biggest challenges faced by global marketers is how best to communicate across countries and cultures.