Summary:

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Cooler.com is a social networking site primarily designed in 2004 by Gary Keegan and William Brent on a second-hand computer for UK residents over the age of 25 years. It was very different than other social media platforms like MySpace and Facebook. In 2007, developments were made in cooler.com, and surveys indicated that it was rated other social media platforms because it had a unique look and site design, lack of advertisements, new video messaging, and customized user channels with the addition of professional connectivity. In 2006 its quoted value was 12 million pounds. It expanded throughout Europe and provided free translation services because English is not that common in Europe, which also helped professionals and job seekers find jobs. Cooler.com couldn't expand to the US because the market was fully saturated, but it did expand virtually to Japan because there was no proper social media site. However, William Brent was not in favour of expansion to Japan and advised that there should be a cooperative office in Tokyo. Cooler.com didn't employ native Japanese and obtained relied on users contacted online for translation of the website's content as it did in Europe. Six months later, the company formed an office in Tokyo and soon realized that the Japanese had different views as they didn't want to reveal their identity; they preferred the use of the mobile app. Also, they felt it was an insult because the company had opened the corporate office in Japan very late, and hence cooler.com was unsuccessful and shut down in Japan.

Skills:

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I have learned that one should focus on innovation in the world of diversity. There could be products or services that are identical or similar. Still, to attract customers, an innovative service should be offered to clients that cover aspects never covered before in a package. I have also learned that for your business to be successful, always listen to others, whether your business partner or senior management, and consider their concerns, thoughts, or views before making a significant decision like expanding your services to another location, country or region. I have also learned that different areas have different cultures and values. A service offered in one place may not be successful in another location due to differences in these values.

Knowledge:

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Porter's five forces are the Power of suppliers, competition in the market, the potential of entry into a new market, the Power of customers, and the threat of substitute products. The most important one of these forces is customers. Expansion into a new location means expansion into a new culture. Customers of the new site are likely to have different cultures and hence the tendency towards a new service. It makes it an essential consideration before expanding into such a location.

Behavioral Change:

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I learned that culture is one of the most important aspects of expansion into a new market. Different customers have different tastes, values, and even economic conditions. Some people will be willing to spend serious money in one region on a service, and others may not be willing to pay the same amount of money on the same product. Expansion into a new area possesses cultural barriers. Launching a product in one country can be a cost reduction technique that can help increase profitability due to fewer expenses. Still, it can be treated as an insult in a different culture. Sometimes hiring the current staff to provide services in a foreign country could be helpful because they already have the expertise to deliver the service. Still, sometimes it can negatively impact the quality of service and lead to customer dissatisfaction. Before the expansion, the cultural values of the people of that region must be analyzed with the service or the way the service is being delivered. Before deciding on expanding into a new area with a new culture, evaluation and good decision-making must be performed to ensure the success of the expansion.