5 Reasons Foreign Companies Fail in the US

By Matthew Sawyer

It’s hard for US companies to be successful in the USA market. It’s even harder for companies based in Europe, Asia, and other continents to achieve sustainable profits in the USA. Competition is fierce, costs are expensive, and consumers are uncompromising in their demands for technology products and services.

“If you’re considering US expansion, you need to thoroughly research and analyze the market & validate your product market fit” said Christophe Garnier, Founder at Spark Labs.

Here are our top five reasons why foreign companies fail in the USA market:

1) Same “Old” Formula

You can’t assume the marketing and sales strategies that work in Europe and Asia will work here. In fact, the USA market and consumers are so different that it almost always requires a new approach. To avoid this error, we recommend working with local experts who can help you navigate the best course.

2) Targeting the Wrong Market

The USA is not one market, but hundreds of market segments with unique attributes, needs, and requirements. Since there are so many options here, consumers will only purchase products and services that are great matches. Therefore, it is critical to carefully target the right market segment.

3) Inappropriate Message and Materials

Too many times, foreign-based companies try to avoid costs by using the same marketing materials and sales presentations. Even if the English is correct, the message and content needs to address the USA market. Again, we recommend using in-market experts to craft the right marketing and sales materials.

4) Incorrect Pricing

Most companies struggle to price their products and services to maximize profits and revenue. It is especially hard for foreign-based companies who are not attuned to the competition and market demands in the USA. Unfortunately, it is never easy to raise prices once they’ve been introduced into the market.

5) Being Outside the Center

San Francisco and New York City are clearly the USA hubs for technology. These cities attract the best talent, support, and opportunities for collaboration. They also offer relatively easy and cost-effective ways to get started and expand. For example, there are many good NYC coworking spaces, including Spark Labs, which enable foreign-based companies to quickly and easily be in the center of the NYC Tech community.

**About the Author**

Matthew Sawyer is Managing Partner of Rocket Market Development LLC, which helps B2B, technology, and foreign-based companies launch new products and enter new markets in the USA by identifying market opportunities and providing market intelligence and go-to-market strategies for sustainable revenue growth. Matthew is an Adjunct Professor of business strategy and entrepreneurship at Parsons School for Design and strategic communication at Columbia University.

**About Spark Labs**

Spark Labs is the global network for innovation. We believe that fostering great businesses starts with having the right environment, team, mentors and local connections. Being entrepreneurs ourselves, we know that launching or expanding a company into the US can be difficult. That’s why we’ve decided to develop a revolutionary ecosystem for entrepreneurs with a very strong focus on community, network and relationships. You can read more about Spark Labs on our website spark-labs.co.