Cultural Differences Between Trompenaars And Walmart

2.9 Brands and borders

When marketing across borders, the cultural environment will inevitably change. Usunier (2009) and numerous others have written about the limitations of Anglo-Saxon approaches in less developed territories. Trompenaars and Woolliams (2004 p7) believe culture is not just a factor - it is the “dominant factor” and “one that pervades all relationships and behaviours…” Their marketing paradigm is based on the three Rs; Recognise, Respect and Reconciliation.

To recognise is the recognition that cultural differences exist, but also to consider the implicit – not just explicit cultural differences. Respect is to avoid the temptation of applying a what is right and wrong and acknowledge that different orientations are just

They also abandoned the morning Wal-mart chant that was performed by staff – both practices were considered “strange” (Deresky 2008 p204).

In China, Harley Davidson, the motorcycle manufacturer, had to contend with laws that require motorbikes over eleven years old be scrapped (Miller 2012). Restrictions in around 100 cities also banned two wheel vehicles from elevated highways and thoroughfares, partly to curb noise (Bloomberg 2011).

L’Oreal, the French cosmetics behemoth has enjoyed considerable success expanding into emerging economies, where in 2012 nearly half its sales originated (Hong and Doz 2013. No pagination). The two report that the main reason for success, according to L’Oréal’s management, is through the deployment of professionals from “multi-cultural backgrounds” into new product development - “the most critical source of competitive advantage.”

A 2001 study on export partnerships published in the Journal of International Marketing supports the importance of this multi-cultural factor (Alon & Jaffe 2013). It states that relationships with people in other countries are most successful when in the hands of skilled professionals with experience across cultures and language

In the country’s early post-independence era, foreign enterprises were seen by some as a form of “neo-colonialism” and deterred (Gaur 2006. No pagination). That has now changed and the investment climate is more positive, although still challenging.

To realise the potential of India, MNCs need to show a strong and visible commitment to the country, empower local management and invest in local talent, while delivering the customization that Indian customers require (Choudhary et al 2012). “…The future of many multinationals depends on their ability to succeed in India” (Choudhary et al 2012. No pagination).

This, in part, supports Sull (1999) who reports that the reason why successful companies fail in a changing business environment is not because of a lack of awareness or inaction. A common problem is “active insertia,” or the tendency to follow established patterns of behaviour, despite dramatic shifts in the business environment – so business leaders simply ramp up activities that have worked in the past – when all they are doing is digging themselves deeper into a hole (Sull