Difficult adapt to culture because of different consumer tastes. Used the same format everything and thing it might work for one country. May not know about local context consumers are unfamiliar with the company. Head office is too far from geographic distances and incurred cost. In order to conduct a business, many different functions are involved. You have to make relationship with suppliers, customers, government agency or any all business activities. As a foreign firm, you have a disadvantage because you do not have a lot of connection and have a weak embeddedness. Not all service can be transferable to foreign countries. Companies need innovation to provide good service to consumers. Consumers who shop at their store want to deliver good service and that kind of strategic thinking focusing on downstream. Can be more effective if partner up with joint venture. Think where you can generate value and where i can be competitive to win the market.