Simmonds (1999)

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Simmonds (1999) - International Marketing: Avoiding the 7 Deadly Traps

There are seven common traps to avoid when internationalising:

1. Entering markets because of their size of demand - Markets should be judged on the effectiveness of the firm's competitive advantage
2. Underestimating foreign competitors - Foreign competitors have not lasted this long without having fought off foreign competitors before. Local firms are established so they usually know the nuances of the market better than MNEs do.
3. Assuming customer expectations are the same globally - The real world is not a global village. Motivations can vary tremendously
4. Entering markets at the wrong price - Too low or too high prices can break a firm before it begins in a foreign country. LDCs have a higher price elasticity of demand than DCs
5. Market entry without planning the expansion process - Firms need to prepare for future market and product lifecycle changes
6. Association with poor partners - Partners with different motivations or capabilities can spell trouble. a "dead distributor" has no intention of marketing actively, and "producer partners" do not distribute well or keep production to a minimum. "Line competing" partners want the product in a specific narrow market, which differs from that wanted by the MNE and "order takers" make sales, but have no idea of the customer's business in order to sell well.
7. Losing brand exclusivity - There are many countries which have little or no proprietary rights laws