Everyone forgets the fourth “C” when they go into a new market.
A client and I talked about their plans to grow into Europe over lunch a few weeks ago. As we talked about what makes a market launch important, they said, “It’s all about the company, the customers, and the competition.”
I was a bit surprised and asked. “What about culture?” The client wasn’t sure if culture would be a big factor. People often don’t notice culture until it’s too late, but it’s the quiet force that makes a business successful.
If you get the culture right, most of the other stuff—like great customer service, building a great long-term brand, or passionate employees and customers—will happen naturally. Your culture is your brand.
Tony Hsieh, Formerly CEO of Zappos
From my experience in cross-border transactions, I’ve seen great plans fail because of cultural blind spots. That’s why I always stress adding a fourth “C” to the design.
Let me break it down in this post for some hard-earned facts and lessons from real life.
Company:
Know Your Strengths (Before Someone Else Does). “Why should customers choose us over local players?” is the first question a business must answer before going into a new market. I used to work for a consultancy firm that thought their success in India would instantly carry over to Singapore. It wasn’t. What made them special in that market hadn’t been made clear to them.
Think about Apple. Their brand is always the same, whether they’re in the US, India, or Brazil: high-end, stylish, and obviously expensive. They don’t change who they are; they just change how they talk about it.
Lesson: Your new customers won’t know what makes you different if you don’t.
Competition:
People often make the mistake of thinking they are only competing with people they think they are. Underestimating rivals or getting them all wrong. In China, Uber found this out the hard way. They thought they could beat the local ride-hailing apps. Instead, they had to deal with Didi Chuxing, a rival who knew more about the market, had better relationships, and played at home. Uber finally left. It’s not enough to just look into who else is offering the same thing. It has to do with who is working on the same issue.
Customers:
They’re Not Just “Global”—They’re People Getting into a market isn’t about your goods; it’s about what they want. McDonald’s got this right. In India, the McAloo Tikki (a spicy potato burger) was used instead of beef. Burgers with teriyaki sauce are sold in Japan. Literally the same brand, but different tastes.
Lesson: You’re just another foreign brand if you don’t adapt to what people want in your area.
Culture:
Culture plays a crucial role in sealing deals. From what I’ve seen, this is where most people fail. Culture is more than just language and traditions; it’s also how things are done. Walmart failed in Germany because their over-the-top American-style friendliness (think greeters at the door) made customers feel uneasy. Germans thought it wasn’t serious. Zappos, on the other hand, did very well by putting company culture first, showing that culture isn’t just outside; it’s inside too. If you don’t care about culture, no amount of planning will help you.
Last Thought
The 4 Cs are not a menu; they are a list. Skipping one “C” is like losing your parachute in the middle of a jump. You might make it through, but it won’t be pretty. So here are some questions to ask yourself before you join a new market: Business: Are we clear on what makes us special? Race: Who are we really going up against? Clients: What do they really want? What rules that aren’t written down could make or break us? What if you’re still not sure?
As the client I had lunch with told me, they are now rethinking their Europe plan with culture at the centre. When you do business around the world, the soft stuff is important.
