Regular readers of this blog know that from time to time we've examined whether global companies have the power to impose standardization upon foreign markets (ala Ted Levitt's original conception of globalized business), or whether the most successful global competitors are those that can adapt their products and business models to work in the face of divergent cultural tastes and norms. Looking at global behemoths such as Disney and Wal-Mart, leading edge product platforms such as My Space and industry trends such as micro brews and the beer industry, the conclusion seems to be that the modern world of information driven consumerism has changed the game since Professor Levitt's seminal article in the Harvard Business Review. As with everything else in the internet age, customer specific customization seems to present the winning formula.
The latest example of this that I've seen is the experience of Kraft Foods selling it's iconic Oreo cookie in China. The Oreo has long been my personal favorite store bought cookie -- so much so that when my 
kids were little, Oreos were called "Daddy Cookies" in our house. Particularly dunked in milk, they are almost the perfect snack food. If there were any product I can imagine that should sell itself anywhere in the world just by getting people to try it, this would be it.
Alas, in the world of global consumer tastes and preferences, such is not the case. Kraft, the world's second largest food seller began marketing the Oreo in China in 1996 (84 years after it was first introduced in the U.S.). Like many "can't miss" products, it in fact struggled. It was too sweet for the Chinese palate. The packaging offered too many at too high a price to be seen as a good buy.
Kraft's efforts under CEO Irene Rosenfeld to become more entrepreneurial in its market approach is highlighted in an article in last Thursday's Wall Street Journal entitled "Kraft Reformulates Oreo, Scores in China." As profiled in the article, a team led by Shawn Warren who took over Kraft's push in China in 2005 completely reworked the product to the point that a Chinese Oreo would be virtually unrecognizable in the U.S. It is a reduced sugar concoction rolled around a combination of vanilla and chocolate creme and dipped in a chocolate coating. The thing that it shares in common with its American namesake is that it is now the country's number 1 selling snack cookie.
As I think about this story, it seems to me there are two distinct approaches for a company looking at entering international markets -- are you trying to find foreign markets for your existing U.S. products, or are you trying to expand and diversify your company into global markets. If it is the former that you seek, then you need to be careful to vet the wants and needs of consumers in particular markets to be sure that they align with the value proposition used to sell your current products. If you are seeking to accomplish the latter, however, aspiring to be a truly global company instead of an American company with products that are sold overseas, then you need to be flexible and innovative in designing products that are right for the markets you are seeking to enter. Understanding this critical difference may require some initial soul searching that in my experience most companies don't do an adequate job of before taking the plunge into international markets.
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