Thursday, March 29, 2012

International Expansion

Tough Mudder has and is continuing to expand into international markets.  They have events in Canada, Australia, and the U.K. in 2012.  In 2013-2014, TM is also planning to host events in Germany, the Netherlands, Sweden, Austria, Switzerland, France, Japan, New Zealand, and countries in South Africa.  Many of these countries don't yet have planned events, but if people are interested in competing there, they can submit their name and email address on the website ("pre-register") and then receive a discount once an event is scheduled.

They employ an international strategy -- there is little pressure for local adaptation (besides geographical factors of course) because Tough Mudder wants to keep the event and their reputation consistent.  In addition, I would assume fairly low pressures to lower costs, although price will vary slightly country to country.

I see two main motivations for Tough Mudder to expand into global markets:

1. The obvious one -- to increase the size of potential markets.  The U.S. represents less than 5% of the world population, which leaves a lot of untapped opportunity to involve people in other parts of the world.  There are definitely high amounts of demand and interest outside of the U.S.

2. In order to truly find the "World's Toughest Mudder," the company better have events worldwide!  Tough Mudder is seeking to become the preeminent brand in endurance sports.  Obtaining a global presence will enhance their brand, and increase awareness and popularity.

The main challenges Tough Mudder will encounter with global expansion will involve inevitable differences between foreign markets: culture, customs, language, income levels, and customer preferences.  These factors automatically bring some degree of local adaptation.

1 comment:

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