When Expanding into a Foreign Market, Your Outsider Status Is a Competitive Advantage

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Entering a foreign market comes with inherent challenges. Many global companies tend to overcome those challenges by minimizing their foreignness and assimilating into the local environments. However, maintaining and embracing foreignness can yield unforeseen advantages.

Whether capitalizing on outsider status to tap into local labor markets, establishing potent associations to build credibility, or forging strategic partnerships to foster mutual international growth, your foreignness can indeed become your competitive edge. By embracing a nuanced approach that acknowledges and leverages foreignness, companies can not only navigate but thrive in unfamiliar territories.

For example, when Uber entered the Japanese market, its disruptive model clashed with localand a culture that prioritizes adherence to rules. Similarly, InMobi, the Indian ad tech firm, once faced hurdles in growing its business in China, where its brand recognition was limited. Even Starbucks, a global coffee brand, found itself overshadowed by local coffee chainAccelerate your career with Harvard ManageMentor®.

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