The paper "Beiersdorf – Expanding Nivea’ s Global Reach" is a great example of a business assignment. There were different factors that contributed to the success of Beiersdorf. The factors acted as building blocks for the success of the company at different times and in different ways in its history. The first building block was the rapid growth and expansion strategy that the company adopted and aggressively pursued immediately after its inception. Theoretically, companies that seek to grow and expand into international markets are influenced by factors such as the available resources, the culture that is prevalent in the new geographical regions and the regulatory policies in force in potential markets (Tallman 2010).
It is a thorough understanding of these factors that enabled the company to successfully expand into new markets and access consumer demand, cheaper labour and emerging technologies in different geographical regions in the world. Further, since many global organisations adopt strategies that are very complex and dynamic (Dumitrescu & Scalera 2012, p. 17), Beiersdorf was highly dynamic in its expansion. It is these factors that shaped the strategy of international expansion that was adopted by the company throughout its early history.
Also, the company took advantage of the process of globalisation to rapidly expand into new geographical regions in the world. It is this process that led to the company establishing subsidiaries in the following regions: North America, South America, Asia, Europe and Australia. The process of international growth by Beiersdorf was not restricted to gaining access to new markets only; it was also motivated by the desire to access control over other factors that would earn the company a competitive advantage.
According to Adams (2013, p. 46), organisations expand into the international market as a means of gaining knowledge and information that will be used as a critical factor in achieving future success. By expanding globally, the company was able to tap into the most recent and promising knowledge in product development and research. This was a critical factor upon which the success of the company in general and that of the Nivea brand, in particular, was built. The second factor that was critical for the success of Beiersdorf was the company’ s heavy investment in research and development and reliance on innovation in developing its products.
Since its inception, the company has heavily invested in research and development. It is research into skincare products that led to the discovery of Eucerit, an important formulation that formed the basis for some of the most important products developed by the company (Hasse 2013, p. 155). Also, the high level of emphasis on research and development led the company to develop a leading research facility in 2004 (Hasse 2013, p. 158). Through the facility, the company has been able to tap into the most recent developments in the field of skin care and use the knowledge to develop a wide range of products that are not only tailored to the local needs of specific markets but are also based on the most recent and effective formulations.
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