The authors of the book seek to identify the reasons that can be attributed to Israel’s economic success despite the nation’s small size both geographically and by population. Israel as a nation is faced by the some of the most formidable challenges in its pursuit of economic development. The country exists in a neighborhood of hostility, and many of its Arabic neighbors do not have any economic ties with the country. This economic isolation has meant that the country does not enjoy the economic benefits of regional integration. However, despite this challenge, the country has experienced tremendous economic growth and enjoys a vibrant economy characterized by many start up ventures. The authors have advanced several reasons for this economic success (Senor & Singer 2009).
The authors have identified the persistence that is ingrained in the Israeli culture as one of the reasons for the nation’s success. The culture of not giving up on any venture despite the challenges that are encountered has been identified by the authors as one of the reasons that Israel has been enjoying success in the global market. The persistence that is promoted by the Israeli culture is therefore perceived as a business asset which when used appropriately and effectively can lead to success in the global market (Senor & Singer 2009).
It is mandatory that every Israeli citizen undergoes military training and practice for a particular period of time. This practice enables individuals to develop responsibility, initiative, networking abilities and personal discipline (Senor & Singer 2009). These are important attributes that are essential for success of any marketer, and this partly explains the country’s effectiveness in marketing itself and its products in the global arena.
The country educational system has been cited by the authors as one of the reasons for the country’s economic success. This strong educational system, combined with the governments encouragement and funding for research and development has played a key role in ensuring that the country continues to develop new and innovative products which are competitive in the global market (Senor & Singer 2009).
Tolerance for failure is another of the reasons for Israel’s economic success. Emphasis is given of the creativeness and innovativeness of a business project rather than emphasizing on the end product of the process. This has led to the development of highly innovative and creative companies in the country which have actively contributed to the development of new products which are competitive in the global market. The authors have proposed that other nations adopt these strategies that have been used by Israel to increase their competitiveness in the international market. Countries are advised to develop the most appropriate education system to develop creativity and innovativeness, and promote venture businesses in their countries (Senor & Singer 2009). Tolerance for business failure during start ups should not be looked down upon as this is the most critical stage in the development of any business.
Some of the propositions to follow Israel’s example are not practical in other countries. Mandatory military service is practically not possible in countries which have very high populations and its beneficial effects on business may thus not be achieved. Different nations also have different educational systems that are tailored to meet the countries’ specific needs. Simply emulating Israel’s educational system will not make a country more competitive internationally.
Implications for global marketing
The Israeli success stories have considerable implications to global marketing. The discipline, responsibility and networking that nationals of the country learn from their mandatory military success are an important asset in the global market. It enables companies from the country to develop responsible and well informed strategies to develop innovative products that are highly competitive in the global market. It also enables easy formation of international marketing networks which are essential for successful international marketing (Travis 2007).
The development of creative and innovative products that can compete effectively in the global market is important towards ensuring a country’s or a company’s continued success in the international market. The Israeli example given in the book clearly illustrates the important role that education, research and development plays towards the achievement of global marketing success. Research and development is critical in market identification, development of appropriate and competitive products, development of the most effective marketing strategy and the successful management of companies marketing internationally (Mohan 2005).
The Israeli case discussed in the book further offers an insight on the importance of the appreciation of cultural diversity in global marketing success. The authors of the book have noted that the Israeli population is composed of immigrants from countries with different economic and cultural practices. This has enabled the companies in the country that market internationally to have an appreciation of the different cultures and social situations of the markets they operate in. this enables the development of the most appropriate marketing strategy for each foreign market. Ability to fit into the social and cultural settings of different markets is considered one of the major factors that companies should consider on entry to foreign markets, and Israel’s case appropriately makes a good example.
Development of strong companies able to weather the highly competitive environment of international marketing is essential to ensure success in the global market. Responsibility and innovation that permeates in the Israeli companies as a result of virtues gained from mandatory military practice has resulted in the development of stable companies with sound management. This has enabled development of products that are able to compete in the global market. The sound management enjoyed by those companies at home contributes to their success in the international markets (Mohan 2005).
Government support for companies which trade in the international market also plays a key role in ensuring the success of companies in the global market. As illustrated by the Israeli case in the book, government support to companies trading both domestically and internationally plays a key role in ensuring that the companies’ products are able to compete competitively in the global market. It is important that governments support the global marketing initiatives of firms within their borders, and the Israeli scenario presented in the book is a perfect example (Daniels, Radebaugh & Sullivan 2007).
Strategic alliances are important to the success of global marketing initiatives and strategies of any company. The networking culture developed by both individuals and companies from Israel contributes to the formation of global marketing strategic alliances with trading partners from different parts of the world. This works effectively towards ensuring the success of such companies global marketing activities and increased competitive edge over business rivals in the international markets (Mohan 2005).
Government support, continued innovativeness of companies, sound management practices and formation of strategic alliances with companies in other markets are the methods employed by Israel that enable its excellent performance in the international market. These practices show a connection between the Israeli business practices and the accepted practices in international market which contribute to success in the global market.
Daniels, J., Radebaugh, L. & Sullivan, D. (2007). International Business: Environment and operations. (11th ed.). New York, NY: Prentice Hall.
Mohan, J. R. (2005). International Marketing. New York, NY: Oxford University Press.
Senor, D. & Singer, P. (2009). Start-up Nation: The Story of Israel’s Economic Miracle. Washington, DC: Twelve.
Travis, T. (2007). Doing Business Anywhere: The Essential Guide to Going Global. Hoboken, NJ: John Wiley & Sons.