Read the full script of Module 2, Episode 6 of the Global Growth Master Class below. Want to get certified on global expansion? Simply click here to access the complete course today.

How do Global Class Companies think about the disruption their entry brings to a local market?

Global Class Companies understand that bringing a cool product or service and creating jobs is not enough of a contribution to the local ecosystems they expand into.  Succeeding in local markets requires a mindset that is open to experimentation and risk-taking, as well as an understanding that local markets require unique solutions.

Global Class Companies understand that what works in one market may not work in another and are prepared to adjust their approach as needed while remaining true to their core values and culture. This agility allows them to be responsive to the needs of their customers and remain competitive in a rapidly changing global market. But more than that, they understand they must be an active contributor to the global communities they do business in. 

Thus, Global Class Companies understand that they must adopt a more thoughtful approach to entering new markets, one that considers the local culture, norms, and regulations

They must work to understand the market, its nuances, and its challenges, and then adapt their product and approach to meet the needs of the local market. They must also be prepared to collaborate with local stakeholders, regulators, and communities, and be willing to make changes to their approach to maintain the long-term health of their business and local relationships. By doing so, Global Class Companies are able to achieve growth and success in a sustainable manner, avoiding the negative disruptions that often come with a "company way" mentality.

The "company way" mentality is no longer effective in today's global business environment. Global Class Companies understand that localization and adaptation to local market and culture are necessary for success. They are willing to disrupt their own practices but maintain their core values and culture. On the other hand, legacy companies that believe in the "company way" mentality overlook the negative impact of their market entry and face resistance from local governments. The lesson to be learned is that companies need to balance their company culture with local market and cultural considerations, engage with local governments, and be mindful of the impact of their actions.

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Instead of disregarding the local dynamics, Global Class Companies take a more collaborative approach. They understand that the success of their business in a new market depends on the support of local communities and governments. By engaging with local stakeholders, they aim to address any potential issues and work together to find solutions that benefit everyone. This approach helps to ensure a smoother market entry and creates a positive impact on the local community.

DocuSign did this when partnering with a legacy company that represented the old-school solution

DocuSign was attempting to replace when entering the Japanese market instead of taking the more disruptive strategy that they were there to take the industry into the future - more on this in a later module. need a little bit more meat. Partnering with one of the oldest Hanko stamp companies, recognizing signatures was not the common way to formalize agreements.

Global Class Companies recognize the importance of considering both the advantages and disadvantages of entering a market. This involves evaluating market conditions and government policies.

Legacy companies often focus on the benefits their products bring to customers, but they may not fully understand the impact they have in countries where they are not originally from. This is particularly true for internet-based products. He stresses the importance of companies being aware of the effect they have on local communities and finding ways to work with key stakeholders to address any potential issues.

For example, when he was leading Facebook's policy development in Europe their team created educational programs for the advertisement industry to help them use technology platforms and modify their business practices. By being proactive, companies can avoid costly problems that may arise later. In the case of Facebook, the publishing industry holds political power in various countries, so the company had to consider the impact it would have on the market players it would displace upon entering a new market.

It’s important for companies to outline what their public policy goals are. Is the main driver purely market entry, or is the goal to change regulation or even bolster the company’s reputation so as to be considered on the correct side of local policy initiatives? Your goals will dictate the best strategy

Moreover, Global Class Companies don’t attempt to exist under the radar. They are proactive; otherwise, chatter will start, and if the narrative is already set, it is hard to reverse. Develop defenses for areas of weakness and stay in front of them.

For decades, the American way of doing business was not only a management mantra but also a point of pride for (legacy) American-born businesses

As we have explained in this article, the days of this mentality are long gone, but the success of companies with strong cultures (even toxic ones) has given rise to the company way of doing things. In this new era of culturally conscious global business, the rising mantra supports the local way, and the companies that will be successful will adopt this mindset and let it permeate all levels of their organization.

An example of disruption gone wrong is seen in the failed attempt by owners of professional soccer clubs in Europe to form their own "Super League." This league was intended to include only the top-performing teams from multiple leagues across Europe and was led by a small group of non-European, mostly American owners.

However, these owners disregarded the reactions of their fan bases and announced plans to impose an American sports model in Europe. This led to an immediate revolt, and the plans were quickly abandoned in less than 48 hours to avoid an international crisis.

Had these owners had a "Global Class" mindset, they would have taken the concerns of their customers, the fan bases, into consideration and not forced the American way of doing things on the situation.

Legacy companies often believe that new markets will embrace their ideas and the effect they have on the market. They believe that disruption is good. On the other hand, Global Class Companies understand that localization is critical and that entering a new market can result in disruptions and ripple effects throughout the local society.

Global Class Companies are designed to fit the local environment, not just to exploit it for profit. Companies like Prezi build with the local environment in mind. Instead of simply asking for forgiveness, as market disruptors like Uber did during their rapid global expansion, Prezi makes an effort to contribute to local ecosystems by paying taxes while many other companies go to great lengths to avoid paying taxes in local markets across the globe they operate in.

Put another way, Global Class mindset can be summed up as practicing local market-conscious disruption.

NOTE: Don't miss out on the next episode! If you want to continue learning about global expansion strategies and dive deeper into the course material, simply click here to access Module 2, Episode 7 of the Global Growth Master Class.