“From the Orb vault” is a series of previous market research, presentations, blurbs, and other conceptual writings that we will start publishing regularly, in hopes it might help shape views on the often unregarded topic of global expansion and localisation (L10N). Through these insights, we aim to shed light on the complexities and inefficiencies that many overlook in the rush to scale internationally.
Expansion is not multiplication; it is transformation. A company operating in ten countries is not merely ten times its domestic size but something structurally different: a new organism requiring new strategies, new intelligence, and often, new ways of thinking.
The Untranslatability of Success
Most market entry failures stem from a fundamental misunderstanding: the assumption that what worked in Market A will work in Market B with minor modifications. This is not just a failure of execution but a failure of epistemology. It is a mistaken belief about the nature of business success itself.
Consider the classic cautionary tale of eBay in China. eBay assumed that its global auction model was inherently superior to local competitors like Alibaba’s Taobao. It was not. Chinese consumers had different trust dynamics, different expectations for user interactions, and a strong cultural preference for direct negotiation. eBay’s assumption that its core value proposition was universal led to an embarrassing retreat.
The lesson: Success is rarely a portable asset. It is a relationship between a business model and a specific environment. Change the environment, and the model must change as well.
The Four Dimensions of Adaptation
A serious global expansion strategy must consider four interrelated dimensions:
- Cultural Resonance
Do not mistake linguistic translation for cultural adaptation. The former is a surface-level operation; the latter is an epistemic shift. A brand that signals premium quality in one culture might signify ostentation or impracticality in another. Even humor, which many brands use as an engagement tool, often does not travel well. The issue is not just jokes that don’t land, it’s the deeper structure of what different societies consider humorous.
- Regulatory and Bureaucratic Complexity
Expanding into the EU? Congratulations, you now need to comply with GDPR, navigate different tax systems, and understand which local labor laws will impact your hiring practices. Moving into India? Prepare for an intricate landscape of import duties, data localisation laws, and state-level regulatory variations.
These are not mere inconveniences but structural factors that shape whether an expansion is viable at all. Many companies treat compliance as a cost center rather than an existential constraint, often to their detriment.
- Operational Scalability
Selling globally is easy; delivering globally is not. Many e-commerce brands discover this too late. Localising a checkout page is trivial compared to building a supply chain that can efficiently fulfil orders in 20+ countries.
Amazon, for instance, spent decades perfecting logistics before aggressively expanding Prime. Companies that prioritize customer acquisition without first ensuring operational readiness often end up with unsustainable unit economics.
- Brand Identity and Perception
Brands exist in context. Tesla, in the U.S., signifies innovation and a certain Silicon Valley ethos. In China, it competes with domestic EV brands that are often more attuned to local tastes and infrastructure realities. What does your brand signify when extracted from its native context? If the answer is unclear, your expansion strategy isn’t strong enough.
Strategy vs. Ego
One of the less discussed but more fatal errors in global expansion is the role of executive ego. Many CEOs want to see their companies expand internationally not because it is strategically sound but because it is an appealing narrative. “Global presence” makes for a good press release, even if the reality is a string of underperforming satellite operations hemorrhaging capital.
The antidote is a simple but often ignored principle: If a market does not make sense, do not enter it. Expansion should be dictated by the strength of market conditions, not the prestige of geographic footprints.
The Adaptive Mindset
To scale globally is to engage with complexity. It requires abandoning naive ideas of uniformity in favour of a structured, research-driven approach. It demands that companies see themselves not as fixed entities being copied across borders but as adaptable organisms evolving in response to new environments.
The businesses that thrive internationally are not necessarily the ones with the best initial product but the ones with the most flexible strategic thinking. The market does not reward stubbornness; it rewards adaptation.
