Marketing Strategy Case Study (Week Four)

1628 words - 7 pages

Globalization IssuesBecause the Internet connects computers all over the world, any business that engages in electronic commerce instantly becomes an international business. When companies use the Web to expand within the business market, they are automatically forced into operating in a global environment. Some of the issues that a company may face when it conducts business through international commerce are trust issues between different environments, culture differences, and language barriers.Trust IssuesIt is important for Staples to establish trusting relationships with their international customers in order to be successful. Companies need to establish a good reputation throughout the world. They begin creating trust by ensuring that customers know who they are and that they are dependable and deliver what is expected of them as a company. Most businesses usually rely on their established brand names, and dedication to customer satisfaction in order to build a trusting environment on the Web. Other ways to develop trust include contributing to the community in some way and providing a partnership with that community or country.Culture IssuesAn important element of business trust is anticipating how the other party to a transaction will act in specific circumstances. Staples must be aware of the differences in language and customs that make up the culture of any region in which they intend to do business. Some cultures take offense to things that other countries may find harmless for example; if advertising milk in India one would refrain from utilizing any comical pictures of cow's because it is offensive to that cultural environment. Web designers must be sure to investigate all avenues of each project to ensure they are not creating an offensive or unattractive web page. Each web page should be acceptable for anyone throughout the world who will be utilizing it.Language IssuesStaples must realize that the only way to do business effectively in other cultures is to adapt to those cultures. The phrase "think globally, act locally" is often used to describe this approach. The first step that a Web business usually takes to reach potential customers in other countries is to provide local language versions of its Web site. Because office supplies can be sold and used in businesses throughout the world Staples must take specific care to ensure that they are able to communicate effectively with all customers in order to do business around the globe.Legal or Regulatory IssuesWhen dealing with legal issues in regards to e-business companies need to be aware of not only local laws and regulations, but also international laws. Once a company makes the decision to do business online they immediately become on international business. Jurisdiction on the internet is harder to define, establish, and assert than the physical world. The following is an excerpt from Staples.com that discusses jurisdiction and can be found under "Legal Terms &...

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