Successful businesses have relied on expanding their operations to new market such as those in new countries. Whereas some countries have potentials, challenges can be faced during the introduction of products or services. The challenges include:
When marketing a product a business firm may be faced with the ethical challenge of price discrimination. Price discrimination refers to the tendency of a business firm to sell one type of goods or services at different prices (Mankiw, 2008). Price discrimination is an ethical challenge that can expose a firm into problems if the customers realize this. When a firm engage in price discrimination, the firm is likely to attract more customers that its competitors.
However, competitors who will not be able to have favorable pricing will suffer. Price skimming is another ethical challenge that a business operation can face. When a a business firm enters into a foreign market, it may hike the price of its good and services so as to target the consumers who are less sensitive to high price. However, the firm may also reduce the price over time in order to attract consumers who prefer low prices (Pradhan, 2009). This is strategy is an ethical issue which can affect the success of the company in the foreign market.
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Legal challenges can also be faced when marketing in new county. In some counties regulations have been passed that make practices like price fixing illegal. Price fixing has been made illegal, under the Sherman trust which is in force in some countries (Hartline & Ferrell, 2008). Such legal issues must be considered before engaging in them. In addition, a business firms has to ascertain that it is legal to sell a given product in a particular country.
Cultural issues are critical in business and must be considered. The culture of the consumers in terms of how they talk and interact with employees need to be considered in order to avoid upsetting consumers. The business firm must meet the cultural expectation of the consumers in order to succeed.
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