Connexia Case Analysis - Understanding The Role Of Governments And Cultural Considerations In Adapting A Global Brand To A Local Context

Case Study Goals:

1.Understand the role of governments when entering into new markets
2.Apply cultural considerations in adapting a global brand to a local context
3.Critically assess marketing implementation strategies.
4.Identify potential country markets that match with a company’s core competencies.
5.Demonstrate critical thinking and effective writing skills consistent with a 400-level college course

Factors That Made Connexia Successful

The role played by the various governmental as well as the private organization in the overall growth as well as the development of particular company or organization is very important (Wright, 2016). The external as well as the internal environments related to the company also play an important role in the overall growth as well as the development of an organization or company (Hitt, Ireland & Hoskisson, 2012). The company under consideration here, Connexia is a data driven agency, which provides services to the people as well as the other companies or organizations in various diverse fields ("Connexia - The Data Driven Creativity Agency", 2018). The company, for example, helps the various other companies in the process of creating effective online advertisements, which help in improving their prospects, the company also provides broadband services on top of providing technical assistance to the other companies as well as organizations ("Connexia - The Data Driven Creativity Agency", 2018). It is an Argentina based company, which is in business for more than a decade. It 2017, the total annual revenue of the company was more than $20,000,000 ("Connexia - The Data Driven Creativity Agency", 2018).

There are various factors, which made the company outsmart its rival and become successful in the longer run. The first major factor can be said to be the lack of dependence of the company on one particular sector. The company provides various diverse services to the customers as well as other companies or organizations like broadband services, technical support, advertisement services and other marketing related help services ("Connexia - The Data Driven Creativity Agency", 2018). Therefore, because of some external factors if one aspect of the business is going through a rough time the company can utilize its other resources to overcome the losses incurred. Moreover, the company provides some unique services to its customers as well as other companies or organizations which were totally new and out of the box models at the time of their launch. The services related to data driven media help, online advertisements and creating effective media profiles for the other individuals as well as companies were not provided by any other companies during the time of the inauguration of Connexia ("Connexia - The Data Driven Creativity Agency", 2018). Therefore, the new as well as innovate technology utilized by this company was appreciated much by the customers as well as other companies or organizations taking its assistance.

Difference of the U.S Market from Argentina

The United States of America, is one of the premier first world countries of the world with remarkable standards of technological as well as business growth. There are several data driven marketing agencies in USA like Rootivo and others, which provide quality services to its customers ("Official Guide to Government Information and Services | USAGov", 2018). Moreover, the presence of these agencies and the help provided by these agencies is a normal thing in USA. Therefore, the company Connexia would not get the surprise element or the element of newness if it were to shift its business to the USA ("Argentina.gob.ar", 2018). The environmental conditions, which favor the growth as well as the development of the company under discussion here, like the newness of the services provided by the company, the lack of technological growth of the country of Argentine along with various other factors ("Argentina.gob.ar", 2018).

Connexia is one of the largest companies in the country of Argentina. However, there are certain operational as well as decision making issues that the company faces at the moment and the resolving of which is very essential for the overall growth as well as the development of the company. The first issue that the company faces is in terms of the products as well as services that it offers to the customers and the other companies. It is true that the company provides services to the customers in various diverse fields, however, there is not one sector in which the company can claim to be the best in the country or in the world. This might prove to be detrimental for the growth of the company in the longer run. The issue that the company is facing at the moment is the lack of zeal for expansion in the other locations of the world. The company, unlike the other global giants has limited the sphere of its operations in the country of Argentina only and had no major centers in the other parts of the world. This strategy as well can hurt the prospects of the company in the longer run.

The issues faced by the company under consideration are actually opportunities in disguise, which if properly utilized by the company can lead to the overall growth as well as development of the company (Hitt, Ireland & Hoskisson, 2012). The company can resolve the first issue faced by it by strengthening itself in one particular area and making the areas of its operation as its side-businesses from which also it can earn substantial amount of profit, in times of crisis. The other issue faced by the company can be resolved by following a policy of global expansion specially in the third world countries which provides tremendous growth opportunities for business growth as well as development  (Wright, 2016).

Issues Concerning Connexia's Current Operation and Decision

The company under consideration here Connexia can use the market of the United Kingdom for the process of its global expansion. The United Kingdom is one of the most industrially as well as technologically developed nations of the world and it the home to some of the largest as well as the biggest companies of the world which can utilize the services provided by the company of Connexia for the process of their overall growth as well as development ("Welcome to GOV.UK", 2018). The major area of operation of the company Connexia is in the technology as well as the media sector so the companies of the United Kingdom can utilize their services for the process of their growth as well as expansion. There is another benefit of the process of opening a business center is the United Kingdom. The majority of the companies of United Kingdom boasts of global ties with the other major countries of the world. The company of Connexia can utilize the networks as well as the contacts of these companies for the process of their own global expansion by providing these companies effective services.

SWOT is an acronym for strength, weakness, opportunity and threats. This is a structured planning tool, which is utilized for the analysis of the external as well as the internal environment of a particular business (Hitt, Ireland & Hoskisson, 2012). The SWOT analysis of the company Connexia would reveal the following facts-

The role played by the various governments as well as their related institutions for the growth as well as the development of a particular company is very significant. It is seen that an effective governmental attitude towards the growth as well as the development of the various business organizations can help the various companies and organization. This factor specially comes into play when a particular company or organization tries to expand its business in a new country or city other than its native place. It is to be noted that an effective governmental strategy can act as opportunity for the companies whereas inconsistent governmental strategies can act as threats to the companies (Hollensen, 2015).

The effective implementation of the various marketing strategies can help the company in the overall growth as well as development of the company (Hollensen, 2015). The company, Connexia, needs to prepare effective marketing strategies for the expansion of its business in the foreign market. Listed below are some of the marketing strategies, which can be utilized by the company Connexia for its growth as well as development in the foreign market-

• The company can provide effective discounted services to attract new customers.
• The company can appoint efficient leaders as CEOs, who by their effective leadership can contribute to the overall growth as well as development of the company.
• The company can improve the quality of the services provided by them to attract more customers.
• The company before making an expansion venture into a foreign country should check whether its conditions are congenial for the growth of business or not.

Recommendations to Solve the Issues Faced

The company can also make use of the several cultural models as well as the various concepts of cross-cultural communication during the process of its global expansion and the opening of its various business centers in other parts of the world (Carbaugh, 2013). The characteristics of Argentina as per the Hofstede’s cultural model is provided by the following figure-

Figure 1: Hofstede’s cultural model for Argentina.

Source: ("Argentina - Hofstede Insights", 2018)

The characteristics of United Kingdom, as per the Hofstede’s cultural model is highlighted by the following figure-

Figure 2: Hofstede’s cultural model for United Kingdom

Source: ("United Kingdom - Hofstede Insights", 2018)

Therefore, from the above two figures it becomes clear that the people of Argentina are less individualistic and like to avoid uncertainty ("Argentina - Hofstede Insights", 2018), whereas the people of United Kingdom are more individualistic are the uncertainty avoidance is less for them ("United Kingdom - Hofstede Insights", 2018). Moreover, the people of Argentina also score less on the masculinity, long term orientation and the power distance section, whereas the people of United Kingdom score more on the masculinity, indulgence and the long-term orientation sections("United Kingdom - Hofstede Insights", 2018). There in order to expand their business in the United Kingdom, Connexia needs to increase the individualistic, masculinity, indulgence and the long-term orientation sections.  

Conclusion

Therefore, from the above case analysis of the company of Connexia it becomes clear that there are various factors that a company needs to take into consideration before venturing to expand its business into a new country or location. The external as well as the internal conditions both are important for the overall and the development of the company or the organization concerned.

References

Argentina - Hofstede Insights. (2018). Hofstede Insights. Retrieved 28 January 2018, from https://www.hofstede-insights.com/country/argentina/

Argentina.gob.ar. (2018). Argentina.gob.ar. Retrieved 23 January 2018, from https://argentina.gob.ar/

Carbaugh, D. (2013). Cultural communication and intercultural contact. Routledge.

Connexia - The Data Driven Creativity Agency. (2018). Connexia.com. Retrieved 23 January 2018, from https://www.connexia.com/en/

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Official Guide to Government Information and Services | USAGov. (2018). Usa.gov. Retrieved 23 January 2018, from https://www.usa.gov/

United Kingdom - Hofstede Insights. (2018). Hofstede Insights. Retrieved 28 January 2018, from https://www.hofstede-insights.com/country/the-uk/

Welcome to GOV.UK. (2018). Gov.uk. Retrieved 23 January 2018, from https://www.gov.uk/

Wright, S. (2016). Language policy and language planning: From nationalism to globalisation. Springer.