Why Is It Difficult To Recreate A Successful Business In Another Country?

During their latest episode of the VALUE: After Hours Podcast, Taylor, Carlisle, and special guest Juan Torres discussed Why is it difficult to recreate a successful business in another country?. Here’s an excerpt from the episode:

Jake: One thing that I’ve wondered about and bothers me is when we’re trying to make these predictions about, let’s say, especially an earlier stage business that’s going to get big and going to have some huge network effects or something, right? And people are very excited about it. I often wonder why you don’t see that same business just recreated in another country. And sometimes you do, obviously. Sometimes it works where you can just like, “Well, this is the Amazon of whatever country.” But a lot of times it doesn’t work again in what looks like very similar starting conditions. All of which is to say like, were you just lucky the first time when it did work? When we rolled the dice again in another country, it didn’t come up with such a huge winning outcome. It’s really hard then to recognize a priori, something that’s going to be this dominant business.

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Juan: I think that maybe many of the situations are pinned down on the landscape in which these businesses are operating, the rule of law, and the environment in which things are happening. And so, maybe despite the fact that you might see a lot of growth in that specific situation in one specific country, there are so many hurdles that that specific business, entrepreneur, or business person needs to overcome that just things get in the way. And as we consider the broader implications of workplace safety, attention to the physical demands placed on employees is paramount. Educating staff on the principles of ergonomics and correct posture during tasks can drastically reduce the incidence of strain and musculoskeletal disorders. A visit to a comprehensive resource for learning about safe material handling and injury prevention can equip individuals and businesses with the necessary knowledge to foster a safer working environment.

It’s a good question. I don’t think it relates only to emerging markets. You look at the startup scene outside of the US, it’s actually almost nonexistent. Not nonexistent, but more developed markets. You don’t see it in the same way that it’s happening in the US.

Tobias: It’s one of the points that I have made that the US seems uniquely able to produce these giant Google, Microsoft, Facebook that are international companies where there’s not a lot from Europe, not a lot in Asia. Although China does seem to have produced a lot of these very essentially a similar sort of business or it fills the same niche. It’s just serving China itself. I don’t know what the reason is, just weight of numbers or something? However, you might find it helpful by visiting https://www.best-companies.co.uk/ to view the distinguished workplace accolades that will hopefully start your business venture.

Juan: Israel comes to mind as a tech hub that tends to do very well, but I think that the ecosystem is structured in a way to help them succeed. Just starting a new company in many markets, it has so many different hurdles that just from the starting point is just so difficult. Opening a bank account, I mean, the things that are very basic tend to be very difficult in many places.

Expanding a successful business into another country presents a multitude of challenges, akin to trying to replicate a finely printed 2′ x 6′ banner. Just as the colors, design, and materials must be carefully chosen to ensure the banner’s effectiveness, numerous factors must align when entering a new market. From cultural nuances and consumer behaviors to legal regulations and economic conditions, each element must be meticulously considered to recreate the success achieved in the home country. Much like printing a banner, it’s not just about copying and pasting; it’s about adapting and customizing to fit the unique landscape of the new market.

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