Localizing the global business models

Localizing the global business models

Often, the minds of people willing to create successful websites “come up” with ideas that are identical to global ones. A website, a blog, or a newspaper publishes a story about an innovator, who has developed a very simple project which now earns millions (YouTube.com, for instance). The very next day a bright enthusiast creates an identical project on the local market. To a certain extent, there is some point in copying existing models because someone has already created something before you, gone through the hard road, while you take the know-how without making any effort and start making profits from this idea on a local level. Sounds good, doesn’t it?

This used to be a widespread practice up until a few years ago, but as we already made it clear, it contradicts the fundamental idea of “global information network”. The fact that the internet is a GLOBAL network means that consumers may use any website in other foreign language – English, Russian, Indian, French, etc. In fact, no one needs a second (local) Facebook when nearly one billion people are already using the original one, and in almost all possible languages. It is still possible to create something for a small regional market, though less likely, following the example of the successful business models around the world. However, if you decide to take up copying someone else’s model and applying it on the local internet market, you should know that there are many risks.

The biggest problem is connected with people’s cultural differences. A project that enjoys huge success in USA may turn to be a grand failure on another market, even if it is realized by its original authors and applied in the very same way. This is explained with the different psychology and mentality of internet consumers in different countries. What is worse is to try and realize a successful local project from another country on the local market in your own country.

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