A&W global failure in Egypt

The Self-Reference Criterion and Ethnocentrism

Amazon’s failure
1. Chinese consumers don’t care for the relatively clean web design Amazon deploys on all its
sites. In China, ecommerce sites like Taobao and JD.com are much more cluttered, cramming
more goods onto a single screen.
2. Reluctance to change at a time when Alibaba was proving more adept at providing a shopping
experience better suited to Chinese consumers.
3. Amazon faces in the country, including endless price wars that eat into profits and the
constant battle against knockoffs.
4. cultural differences, less important reason
5. If Amazon carves out a successful niche, there’s plenty of money to be made in China’s
thriving ecommerce market. Solution
Korean Air
1. Cultural systems with a high power distance, such as the Korean peninsula, are characterized
by an attitude which is mainly "deferential towards authority". Therefore, it is more
common to see difficulties in suggesting alternatives or contradicting a superior.
2. Power Distance Index. This can be useful when trying to measure the “Hierarchical distance".
In other words, to what extent the authorities are respected and considered within the cultural
system (including institutional authorities such as family, school,colleagues within context the
context of work).
Walmart Failure in Germany
lack of intercultural competence and management skills. The main challenge of post-merger
integration is further complicated significantly if it is in a Cross-border Merger or acquisition, with all
issues frequently being compounded by a lack of language and culture bridging skills.
Two factors that Contributed to the Wal-Mart’s unsuccessful efforts in Germany:
1) Specific Difference in German Consumer behavior and Culture in comparison with
US Consumers.
The biggest mistake of Wal-Mart was to ignore the local culture, local buying habits and
impose an American boss on its German operations.
2)Inefficient Top Management which ignored the relevance of local Culture:
Suggestions and Recommendations
1)Political, Social, Economic and Cultural Analysis of the Country
2)Go global and think they are local
3)Communitarianism(German) over Individualism(USA)
Understanding the cultural dimensions of a Country through proven Cross-Culture models
will always help a company to formulate a specific approach that will encourage team spirit
and joy among the Global Team.
4) Continuous Updating of Strategies to successfully withstand the local competition
Continuously analyze the impact of their various strategies on the local market. Understand
the shortfalls, and modify it in such a way as to cater the local market in a much better way
than the competitors.