HBR 3

INTRODUCTION TO INTERNATIONAL BUSINESS
2022 – 2023
Assignment: HBR 3
Group number: 31 Team number: 7
Tutorial lecturer: Dr. Juliette de Wit
Student: Yudhistira Surya Student number: S5301343
Student: Salman Rafiwardhana Susilo Student number: S5287367
Date: 13-12-2022
In the Harvard Business Review article titled “3 Obstacles to Globalizing a Digital Platform”, Liang
Chen, Sali Li, Noman Shaheer, and Max Stallkamp elucidated the high-level principles that can guide a
company with digital platforms as its core offerings to maintain a competitive edge while expanding to a
foreign. The article stated that in order for a digital business to thrive internationally, it cannot solely rely
on network effects, but must consider a localized user acquisition strategy, and an adaptive
organizational structure, as well as have the capability to adhere with local business environments
requirements. To a further extent, the authors emphasize that to maintain a competitive edge as a digital
business when entering international markets, companies must adapt their user acquisition strategies,
establish effective internal support systems, and have a savvy approach to navigating local business
environments.
The article’s main objective is to educate the readers on how digital businesses can thrive while
expanding internationally. We strongly view that this purpose as a strength as the problem that is being
defined is relevant, strong, prevalent in many firms globally, and the insights is certainly something to
learn for by other firms who are facing similar problems. The authors introduced some cases in point
being Bytedance, Dropbox, and Xiaomi, which all are technological companies which are known to have
higher likelihood of failure. Technological companies (or also known as startups) can fail for many
reasons, including running out of cash, not having a viable business model, not having a competitive
product, not being able to adapt to changing market conditions, and not having a strong leadership team.
Thus the purpose is clearly relevant to the readers, particularly those running digital businesses, where
they are more prone to failure. To overcome the challenges, the authors also provided insights from
proven use-cases by technological companies.
The author has introduced interesting insights, starting with the different nature of a technological
company compared to conventional ones, especially in the means of expanding. The author discovered
that in the digital sector, while network effects can be beneficial in international expansion, its impact
declines when crossing borders. This phenomenon correlates strongly with the theory of ‘liability of
foreignness’. The liability of foreignness refers to the disadvantages that foreign firms face when
operating in a foreign market. These disadvantages can arise from a variety of factors, including
differences in language, culture, and legal systems, as well as from the lack of local knowledge and
relationships. In order to face these unique challenges, companies must also take a different approach in
expanding, which includes acquiring complementors on top of users, adopting a modular structure, and
understanding local concerns to address risk. The author was able to explain, with structure, the problems
to take into account and the solutions to alleviate it.
To investigate these problems, this paper provides well-constructed information obtained via extensive
study and detailed analysis of quantitative and qualitative investigations. This study comprised
assessments of mobile app data from app stores in more than 50 countries, regulatory filings, and
investment records, as well as more than 100 hours of interviews with leaders from platform companies
such as Xiaomi, Dropbox, and ByteDance. This article was informative because it presented
well-constructed content obtained via extensive study and deep analysis of quantitative and qualitative
investigations. The study's results reveal that technology platform companies have gotten more
sophisticated in how they manage and administer the mobile app ecosystems for which they are
accountable. Despite the hurdles they confront, these firms have devised unique techniques to effectively
manage the mobile app ecosystem. Furthermore, the author draws on the experiences of a variety of
different technological enterprises to demonstrate the many techniques that these organizations have
employed to attain success.
From the standpoint of the conclusion, the information supplied in this article was sufficient and
necessary. It does provide a thorough explanation of the benefits of a digital platform business model in a
global setting. To avoid being overtaken by local competitors, firms must adapt their user acquisition
strategies, build out effective organizational supports, and navigate local business environments with
savvy. Firms must modify their user acquisition methods, build up strong organizational support, and
navigate local business contexts with knowledge. However, further explanation is required in order to
reach stronger and more reliable conclusions about the subject at hand. The lesson from this piece of
writing is that, despite the fact that it offers a wealth of information, much more investigation is required
before conclusive and trustworthy conclusions can be reached.
In conclusion, we strongly view this purpose as a strength as the problem that is being defined is relevant,
strong, prevalent in many firms globally, and the insights is certainly something to learn for by other firms
who are facing similar problems. The author has provided intriguing observations, starting with the
distinct character of a technology corporation in comparison to traditional ones, particularly in terms of
expansion. The author was able to convey the challenges to consider and the methods to relieve them in a
structured manner. This article investigates these issues by providing well-constructed material gained via
comprehensive research and careful analysis of quantitative and qualitative studies. In terms of the
conclusion, the material provided in this article was adequate and essential. It does give a comprehensive
description of the advantages of a digital platform business model in a global context.

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INTRODUCTION TO INTERNATIONAL BUSINESS

Group number: 31 Team number: 7

Tutorial lecturer: Dr. Juliette de Wit

Student: Yudhistira Surya Student number: S5301343

Student: Salman Rafiwardhana Susilo Student number: S5287367

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