Expanding operations into a foreign market can be difficult, even for the largest plumbing company on the planet. Roto-Rooter expanded their operations worldwide by licensing master franchises Canada, Australia, Japan, China, the Philippines and Indonesia to add to their well established North American locations. To understand the challenges faced by Roto-Rooter, a plumbing industry analysis must be done for North America, Indonesia and the Philippines. The cultural differences between the three areas must be examined to determine how challenging it will be for Roto-Rooter to thrive in these global markets. A complete breakdown of the entry strategy is needed to understand the planning process for Roto-Rooter. Since it has been twenty Years since Roto-Rooter has entered these markets, a retroactive study must be made to determine if they were successful. After a look back, it can be determined if there is anything they could have done better.
Industry
Overview
Plumbing is a service based industry that is divided into two segments, installation and repair. Installation consists of the installation, design and maintenance of commercial and residential potable and waste water systems. Repair is anything dealing with retrofitting or maintaining those systems, whether it is on a planned or emergency basis. Plumbing was found to be critical in the late 1800s when it was found that microorganisms were making the population sickly. Moving waste water out and clean water into homes provided the sanitation necessary to mitigate these sicknesses. Various new materials and technologies have revolutionized the plumbing industry, in functionality, speed of installation and speed of use. The integration of computers with plumbing has made the ...
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Each country has its own culture, with subcultures inside the dominant culture (Schaefer, 2009, p.69). “Culture is the totality of learned, socially transmitted custom, knowledge, material objects, and behavior” (Schaefer, 2009, p.57). Values, artifacts, and ideas are also part of culture (p57). With globalization there is the integration of these cultural aspects, as well as language, social movements, and ideas throughout the world (Schaefer, 2009, p.20). Internationalization helps with this integration. Internationalization is the process of planning and implementing products and services so that they can easily be adapted to specific local languages and cultures (Linfo, 2006). Numerous American retail firms have expanded to other countries. Many have been quite successful due to their internationalization. However, failure to study the culture, retail practices, and consumer market of the country they intend to expand to can be quite costly. Although Home Depot is one of the world’s largest home improvement stores, their expansion to Chile cost them enormous financial loss, resulting in their divestment (Bianchi & Ostale, 2006, section 1, para3). This paper will look at successful international expansion of Home Depot stores, analyze what mistakes were made in Chile, and make suggestions of what could have been done differently.
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Shower buyers fall in three pricing segments: premium, standard and value. First, premium segment is conducted of people who mainly shop in showrooms. Their focus is on great service and high performance. Second segment is called standard. Customers in this segment rely on plumber recommendation and emphasize performance and service. Value segment conducts mainly customers who are primarily concerned with convenience and price. Thus, they like to avoid excavation and also tend to rely on independent plumber in selecting a product. Value segment falls in with DIY market, where people tend to buy in large retail shops, interested mainly in inexpensive models that are easy to install and they are also strongly price sensitive.
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
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Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...
...ndustry well established in Canada, McDonalds’ traditional competitors have all found their own niche. Their constant changes are more directed at customer satisfaction then keeping inline with their competitors.
Waste water treatment plants are essential to communities of all sizes and must work efficiently. Waste water treatment plant primary priority and responsibility is the treatment of incoming sewage water by the removal of biological and chemical wastes so it can be treated and recycled for future use. There are many government agencies and standards set forth to govern and observe the successful treatment of sewage such as: the Department of Environmental Quality, the National Pollutant Discharge Elimination System and the Clean Water Act of 1972. Compliance and constant monitoring of the treatment plant’s operations are important; as they protect the surrounding community. A spill or backflow of sewage due to a complete system malfunction could potentially be detrimental to the environment and local community. A precise system, of which must be compliant according to government standards, is critical to maintain low levels of wastes that are returned to neighboring water systems after treatment.
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Expansion across seas can be very advantageous and lucrative for many companies; however, there are many risks associated with doing business overseas, and companies that intend to expand internationally should be careful and strategic when doing so. Not only do companies run the risk of experiencing a product fail due to differences in cultures, they also face severe political and economic risks as well.
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