How does an organization build a business model that allows it to go global? What factors do its leaders have to take into account? Are there examples of best practices? Be specific and give examples.

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I also need a 1 paragraph (5-6 sentences) response to the following post:

Daniel post

Each global venture must globalize the best it has to offer or harness the best the globe has to offer. Every global venture will each have their own unique business model but success comes from using common best practices for executing on a global business model. 

The first best practice and factor that a leader has to take into consideration is truly understanding the strategic gains you want from globalization. For example, leaders must define want exactly they want out of going global such as cost savings, market diversification, product innovation, etc. Leaders must also truly understand the reverse, what they don’t want to get out of globalization. Properly defining both helps build a business model and strategy to achieve the true gains needed. 

The next best practice is tailoring the business model to the locations you serve. A substantial amount of tailoring is required to serve the local conditions of a global venture. Even those ventures that are trying to replicate a successful model elsewhere must tailor to local market conditions. Those market conditions can include social and governmental institutions, culture, consumer tastes and budgets, languages, etc. The text gives Blink Booking as an example of tailoring to market conditions. Blink Booking is the Spanish version of the Hotel Tonight business model and when it was brought to Spain, significant tailoring was needed to sell local hotels to sign up, tailor local advertising campaigns to attract local residents and finally make the platform available in multiple languages to attract guests from across the European market. 

Partnerships that are cross-border are common in global ventures. Many national governments require foreign ventures to work with local companies. Partnerships give global ventures access to local attributes where they can be strategic together and compliment each other. Talent and funding are critical resources that local partners can provide. The text highlights Grab Taxi as an example of utilizing strategic partnerships. When it launched it apps in Southeast Asia, they partnered with large, powerful businesses in each country to help provide political clout, corruption protection, local financing and local market insights on customer behavior and needs. 

Finally, utilizing cross-border networks to build a business model harness the benefits of ethnic and professional ties. Global ventures typically launch in the founders’ home country because they know the market, have connections, and speak the language. Starting in a foreign market would be difficult because you would need to understand culture, business environment, regulations, etc from the ground up and would be a barrier to entry and widen the margin of error.