Question

Simone Lowes, a successful retail chain from Spain, failed to establish its market in Germany. The main reasons for its failure were designing its retail outlets in Germany the same way it did in Spain and selling its products at low prices. People in Spain like to purchase products at bargain prices, whereas people in Germany often associate low prices with poor quality products. This shows that Simone Lowes failed to consider which uncontrollable factors in Germany?

Answer 1

Answer:

Cultural influences

Explanation:

Simone Lowes failed to consider cultural influences in Germany, and specially the differences between German customers and Spanish customers. Cultural adjustment is vital for a successful foreign expansion, but it is also a very challenging task. Since the corporation is unfamiliar with the foreign market, they tend to use the same reference frames as they do on their local markets, and sometimes that may lead to failures.