Cross-Cultural Competitive Intelligence Strategies by Adidam, Gajre and Kejriwal - Essay Example

Introduction The research paper, ‘Cross-cultural competitive intelligence strategies’ by Adidam, Gajre and Kejriwal is highly relevant in the contemporary environment of fast transforming business dynamics. The globalization has significantly increased business competition across the world. The need to explore and exploit new market has become critical element of competitive advantage. The paper gives huge insight into the business planning that necessitates the incorporation of competitive intelligence to exploit important information about the countries and business models of competitors. The authors believe that it is a continuous process of assimilating environment information about the changing socio-cultural and political environment within which business operates. Businesses fail not because of lack of competency and financial backup but because of failure to exploit the cultural competencies of the new market and market paradigms. The qualitative research has used wide array of literature and interview with 12 CI consultants, working in different countries to provide guidelines and approach for effective CI. CI is primarily the methodology of gathering of information about the changing business paradigms across the countries with business potential. It provides the business with strong database of knowledge that can be judiciously exploited to gain and maintain competitive advantage. CI is a complex process and must be understood within the broader context of varying socio-cultural, political and legal imperatives of the nations. The understanding of various external factors facilitates in collecting relevant and authentic information that can be exploited by businesses for sustainable growth across globe. Research has analyzed CI practices for developed and developing nations where the scope of expansion exists for US firms which are as follows: 2. CI in developed countries Applications of CI practices are different for myriad reasons which are distinct in their perspectives vis-a-vis culture, technology, political and legal environment etc. 2.1 Europe European Union has huge market potential but cultural diversity across nations necessitate cross cultural understanding. Business must use different strategies to glean information about businesses in different European nations. Telephonic and email is acceptable and cost effective means of communication. Face to face interview should only be followed for competitors. Language barrier is important factor and native language, wherever possible, should be used to gain trust. CI practitioners must flexible in their approach and be prepared for differences in opinions. They must also corroborate data from wide sources. Last but not the least important is that 2-3 weeks before and after main holidays must be avoided as Europeans tend to focus on their holiday plans or busy finishing their backlog. 2.2 Japan Japan has maintained its technological superiority in digital goods like camera, electronics goods etc. in the international market. Government facilitates CI support to its domestic businesses which, unfortunately, they do not exploit due to lack of analytical tools. But at the same time, it also offers huge business potential for international firms. Due to government support to CI practices, Japan lacks publicly available data regarding businesses. CI practitioners should therefore, focus on developing trust which is critical factor in Japanese culture and use social networking to collect information. 3. Developing countries These are emerging markets which offer huge scope of business opportunities for international businesses. Due to socio-cultural diversity and different political systems across emerging economies, CI practitioners need to be discriminatory in their approaches while gathering information. 3.1 China It is one of the most important and fastest growing economy which uses CI approach to exploit new opportunities across the globe. There is huge competition in the Chinese market which makes CI practices an intrinsic part of global business planning. Cultural paradigms are important issues which significantly influence business outcome. Hence, understanding of socio-cultural imperatives needs to be critical elements of CI approach in China. 3.2 South Africa It is a relatively new independent nation that is yet in the process of assimilating its resources for improving its economic conditions. Huge opportunities are available in banking sector, information technology, telecommunication etc. Close linkages need to be formed between state intelligence and private sector to promote economic development. Changed business perspectives and need to bring South Africa on the world map of industry are essential issues which must be included within the strategic business plans of international businesses. 3.3 Latin America Latin American countries have largest inflow of foreign businesses and therefore have become highly competitive. Lax government control and rules have created a corrupt business environment that makes retrieval of correct information very difficult. Information is not easily revealed as CI is looked upon as spying. 3.4 Russia Despite moving towards capitalism, the government still has strong control over large companies and important sectors. While it has huge potential in various sectors like telecommunication, petrochemicals etc., information dissemination through mass media like journalism, internet is often biased due to political alignments. The Russians have strong distrust of strangers and trust building is important factor for developing business relationship. CI approach must ensure face to face discussion, team that includes trusted Russian, strict ethical parameters and appreciation of Russian art and culture. 3.5 Middle East It is a group of 19 nations that are rich in oil and gas resources. They offer huge market scope for foreign firms. Language barrier and lack of indexing for Eastern sources and newspaper makes it extremely difficult to garner information. The changing political scenario and legal system further complicate the retrieval of information. CI practitioners therefore must make efforts to overcome language barrier and patiently try to gain confidence of the local community and domestic business community. 4. Five processes to conduct cross cultural CI The authors promote a five process guidelines for effective CI practice: 1. Define requirement Awareness of differences between the socio-cultural, political and legal environment of home and host countries is vital to define CI requirements. 2. Assign a cultural leader Selection of leader who is proficient in local dialect and culture must be business priority. 3. Organize cross cultural CI structure Ethical framework must be defined and cross cultural understanding be developed within the staff while in host country. 4. Collect information and analyze it Information related to culture, legal and political environment etc. should be gathered and evaluated. 5. Disseminate intelligence The knowledge gained through analysis of data must be used to exploit opportunities and gain competitive advantage. 5. Conclusion The paper therefore greatly facilitates business entities to acquire critical information to gain knowledge that could give business a distinct leverage in the highly competitive global business. The cultural paradigms of nations across the globe are vital elements of social fabric within which the international and domestic businesses operate. Hence, CI tools become highly pertinent for global businesses to exploit information and enhance sustainability of business across geographical boundaries. (words: 1110) Reference Adidam, Phani Tej, Gajre, Sampada and Kejriwal, Shubhra. (2009). Cross-cultural competitive intelligence strategies. Marketing Intelligence & Planning, 27(5), 666-680. Read More