Yogo Game, Inc., a successful Japanese social media company, had launched a subsidiary in the United States. In spring 2016, the parent company directed the subsidiary to expand its U.S. operations. Yogo Game America projected that it would need to triple its workforce by the end of 2017, which required that the U.S. subsidiary decide whether to hire locals or expatriates, and whether to adopt the company’s home culture of Japan or its adopted culture in the United States. These decisions were complicated by the fast-paced, highly competitive gaming industry targeted by the subsidiary. Employment in the high-tech sector had its own subculture within the broader U.S. culture. What policies and practices would help the company adapt to the U.S. culture without sacrificing the Japanese policies and practices that had already made the parent company so successful?
In 2012, Pactera, a China-headquartered IT service firm, went public on the NASDAQ. In 2014, it was taken private by a consortium led by the U.S.-based global investment and advisory firm Blackstone. This accelerated the firm’s expansion in the U.S. market and its plans to move up the value chain. Pactera’s executive vice-president must formulate and implement the right strategy in order to continue its success in the U.S. market, gain access to cutting-edge technology and talent, and better compete against sophisticated American and Indian rivals. Failure to apply the correct strategy to its operations in the U.S. market could restrict its growth and negatively impact its performance in the global market.
The president of I-Star America, Inc. and vice-president of I-Star Corporation reflected on the success of I-Star in the Chinese and Japanese IT markets and the challenges of increasing market share in North America, one of the largest markets in the world. I-Star was expected to grow about 30 per cent in the next few years, and the president considered whether the strategy used in Japan could be applied to North America.<br><br><br><br>Many Chinese firms that experienced success in China were less successful in international (western) markets for a host of reasons, including failure to adapt business processes and products to the new market and the perception that Chinese goods and services might be of lower quality.<br><br> <br><br>The president believed that I-Star’s past and future success relied on the company’s ability to innovate in creating value for its customers. He believed that with the right strategy I-Star could generate revenues of US$50-100 million and build up a cadre of more than 200 employees in the software and services division in North America. How could I-Star increase its brand awareness and presence in North America to best achieve these goals?