As someone who hails from an Asian country, I am highly intrigued by cross-cultural business practices in the Asia-Pacific region. I have always been fascinated by the similarities in cultures and business etiquette across Asian countries, and I believe that these similarities can be leveraged by companies to expand their operations across different Asian markets. However, in the meetings we had during the International Study Course trip to Singapore with various business professionals, I have come to realize that although there are indeed many similarities among Asian countries, there are also significant differences. The ability to understand and navigate these differences can be a critical factor in determining a company's success in a new market, even if both countries are situated in the same region.
During our meeting with Google, we learned about the success stories of Grab and Go Jek, two ride-hailing companies that have become household names in Southeast Asia. Although both companies started out as Uber copycats, they were able to thrive in the region due to their founders' deep understanding of the local market. Being residents of the countries where they launched their businesses gave them a unique advantage in identifying the weak points of the ride-hailing industry and tailoring their services accordingly. As a result, they were able to gain a foothold in a fiercely competitive market and eventually outcompete Uber. This ultimately led to Grab's acquisition of Uber's business in Southeast Asia and Uber's exit from the market. Grab’s success highlights the importance of having a nuanced understanding of local markets when expanding globally and how local knowledge and expertise can give a company a significant competitive edge.
In the meeting with GIC – a sovereign wealth fund managed by the Singapore government – it was highlighted that the company has a strict policy of not investing in any region unless they have a local team present. Despite having investments all over the world, GIC believes that having a local team in place is essential to make informed investment decisions. The local team is composed of employees who are originally from the region, who can provide them with a deep understanding of the local market. This understanding includes knowledge of local policies, regulations, and cultural nuances that can impact investment decisions. Having a local team in place also enables GIC to make more accurate projections of future market changes, which can be influenced by both internal factors such as policy changes and external factors such as global events. With this knowledge, GIC can make well-informed investment decisions that reduce its overall risk. Additionally, the local team can provide valuable insights to the broader investment team, including information on the region's investment climate and potential opportunities. Ultimately, GIC's approach of making investments with a local team present has helped the company build a strong track record of investment success.
The
meetings
I
attended
during
the
trip
clearly
highlighted
the
importance
of
understanding
the
local
market.
When
businesses
have
a
strong
understanding
of
the
local
market,
they
can
identify
and
target
their
ideal
customer
base.
By
analyzing
the
needs
and
preferences
of
their
customers,
businesses
can
effectively
tailor
their
marketing
efforts
to
reach
the
right
audience,
leading
to
increased
sales
and
customer
loyalty.
In
addition,
understanding
the
local
market
can
help
businesses
identify
their
competition
and
develop
competitive
strategies.
By
analyzing
the
strengths
and
weaknesses
of
competitors,
businesses
can
make
informed
decisions
about
pricing,
product
positioning,
and
marketing.
Compliance
with
local
laws
and
regulations
is
also
crucial
for
avoiding
legal
issues
and
financial
penalties.
Moreover,
understanding
the
local
market
can
help
businesses
identify
growth
opportunities.
By
uncovering
untapped
markets
or
new
product
and
service
offerings
that
may
be
in
demand,
businesses
can
grow
their
revenue
and
expand
their
customer
base.
Building
relationships
with
customers
and
other
stakeholders
is
a
crucial
aspect
of
understanding
the
local
market.
By
demonstrating
a
commitment
to
serving
the
local
community
and
customers'
needs,
businesses
can
increase
loyalty
and
improve
their
brand
reputation.
Understanding
local
markets
is
a
vital
part
of
any
successful
business.
Even
in
places
that
might
seem
similar,
there
are
always
local
differences
that
must
be
tapped
into
and
understood.
This
allows
companies
to
tailor
their
products
to
the
local
customer
base,
build
connections
and
relationships
within
communities,
comply
with
local
regulations,
and
build
up
a
positive
reputation.
This
trip
showed
that
understanding
the
local
business
market
is
foundational
to
building
up
any
company.
